Yale School of Management

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COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation

June 17, 2020

Insurance supervisors around the world outside the U.S. have urged companies they supervise to conserve capital during the COVID-19 crisis by limiting payouts to shareholders and bonuses to executives. 

At the same time, many supervisors have sought to help insurers avoid procyclical behavior by mitigating the impact of volatile market swings on the value of insurance company assets and, in turn, on measures of their capital adequacy. 

Continue reading “COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation”

COVID-19 and Insurance (2 of 3): Operational Regulatory Relief

June 16, 2020

Many insurance supervisors have provided temporary relief to help companies manage during the COVID-19 crisis.

Most of this relief comes in the form of extended deadlines for submitting various reports or provisions that make remote compliance easier. Regulators have also suspended supervisory activities and loosened accounting rules.

Continue reading “COVID-19 and Insurance (2 of 3): Operational Regulatory Relief”

Federal Reserve Expands Support to Corporate Bond Markets Again

June 16, 2020

On June 15, the Federal Reserve (Fed) updated and expanded the Secondary Market Corporate Credit Facility (SMCCF), one of the Fed’s corporate bond-buying programs, to support market liquidity and the availability of credit for large employers. The recent change allows the facility to buy U.S. corporate bond portfolios that track a broad market index.

Continue reading “Federal Reserve Expands Support to Corporate Bond Markets Again”

COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses

June 15, 2020

Insurance companies face unusual challenges during the COVID-19 crisis. This blog describes efforts by companies and their supervisors to:

  • Reduce financial burdens on insurance customers, for example, by allowing them to defer premium payments. 
  • Resolve the controversy over whether existing insurance coverage extends to businesses that have lost revenue during the crisis.
Continue reading “COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses”

COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation

June 17, 2020

Insurance supervisors around the world outside the U.S. have urged companies they supervise to conserve capital during the COVID-19 crisis by limiting payouts to shareholders and bonuses to executives. 

At the same time, many supervisors have sought to help insurers avoid procyclical behavior by mitigating the impact of volatile market swings on the value of insurance company assets and, in turn, on measures of their capital adequacy. 

Continue reading “COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation”

COVID-19 and Insurance (2 of 3): Operational Regulatory Relief

June 16, 2020

Many insurance supervisors have provided temporary relief to help companies manage during the COVID-19 crisis.

Most of this relief comes in the form of extended deadlines for submitting various reports or provisions that make remote compliance easier. Regulators have also suspended supervisory activities and loosened accounting rules.

Continue reading “COVID-19 and Insurance (2 of 3): Operational Regulatory Relief”

Federal Reserve Expands Support to Corporate Bond Markets Again

June 16, 2020

On June 15, the Federal Reserve (Fed) updated and expanded the Secondary Market Corporate Credit Facility (SMCCF), one of the Fed’s corporate bond-buying programs, to support market liquidity and the availability of credit for large employers. The recent change allows the facility to buy U.S. corporate bond portfolios that track a broad market index.

Continue reading “Federal Reserve Expands Support to Corporate Bond Markets Again”

COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses

June 15, 2020

Insurance companies face unusual challenges during the COVID-19 crisis. This blog describes efforts by companies and their supervisors to:

  • Reduce financial burdens on insurance customers, for example, by allowing them to defer premium payments. 
  • Resolve the controversy over whether existing insurance coverage extends to businesses that have lost revenue during the crisis.
Continue reading “COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses”