Supervision And Regulation Of Private Equity Insurers

There are numerous insurance articles that, while acknowledging the benefits that could be brought by private equity and alternative asset managers, have outlined the risks and potential issues that arise from this participation. While such articles are invaluable, in reviewing this material, very little instruction has been provided regarding the steps that regulators could take to exercise effective oversight of such business models. With this paper, the Bermuda Monetary Authority (Authority or BMA) seeks to contribute to the literature by sharing examples of approaches that regulators could take when confronted with private equity/alternative asset manager-owned and/or supported insurers.