Summary
Includes related articles - Pension Fund Management
The reliability of guaranteed investment contracts (GICs) in the insurance industry was examined at the Financial Executives Institute's fall conference in Washington, DC. The round table talks among corporate pension managers noted that two major issues in the insurance industry provide solutions to the GIC question. One solution involves the issue of insurance industry's liquidity and considers the implications for corporate sponsors. The other solution calls for a stepping up of federal regulation of the insurance industry. The remarks on GICs of the former Superintendent of Insurance of NY James P. Corcoran, New York Life Insurance Exec VP Thomas P. O'Connor, and Institutional Investors Consulting Pres Len Chaikind are provided.See the full content of this document
Extract
Do GICs and annuities work today?
Issues confronting corporate sponsors of GICs and annuities are discussed by an insurance executive, a lawyer, and a pension consultant.
How reliable are guaranteed investment contracts and annuities in today's insurance industry environment? To put the question in perspective, GICs alone represent an asset class of between $150 and $200 billion. Corporate pension managers see the answer revolving around two major insurance industry issues. The first is the liquidity of the insurance industry and the implications for corporate sponsors. The second is the pressure for increased regulation of the insurance industry at the federal level. These two subjects were addressed by roundtable talks at the recent fall conference of FEI's Committee on the Investment of Employee Benefit Assets (CIEBA), held in Washington, DC. The following is an edited version of the participants' remarks, including a brief Q&A session. THE KEY is SOUND REGULATION James P. Corcoran Partner Wilson, Elser, Moskowitz, Edelman & Dicker (Former Superintendent of Insurance, New York State) Regulators usually try to keep the insurance industry boring and dull. But that wasn't ...See the full content of this document
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