Thomas D. Gober is a Certified Fraud Examiner with expertise in all lines of insurance and currently specializing in life insurance and captive reinsurance, including violations of Statutory Accounting Principles.

Shadow Insurance

The 2008 financial crisis highlighted the dangers of shadow banking, that is, leverage hidden in off-balance-sheet entities.

Shadow InsurancePerfect For All Sizes

Over the last decade, changes in regulation led to an unprecedented expansion of life and annuity reinsurance between regulated operating companies and shadow reinsurers (i.e., less regulated off-balance-sheet entities).

The Captive Triangle

Where Life Insurers’ Reserve and Capital Requirements Disappear

Where Life Insurers’ Reserve and Capital Requirements Disappear

A significant number of U.S. life insurers use captives1 (including “licensed” captives as well as special purpose vehicles and non-flagship affiliated unauthorized reinsurers) to manage what they perceive to be overly burdensome regulatory reserving and capital requirements for certain types of business.

Insidious side letters SHADY BUSINESS ON THE SIDE

Undisclosed agreements – side letters – between an insurance company and a reinsurer can hide egregious and fraudulent transactions from regulators, investors, and consumers.

By Thomas D. Gober, CFE, and Leslie N. Bailey, CFE

An insurance company executive faces tremen- dous pressure as Dec. 31 approaches especially because the company’s balance sheet has deteri- orated below the financial ratio red-flag alerts.

NAIC Examiners Handbook Financial Condition Affiliation

Certain general procedures, many of which do not result from a SRA, should be considered on all examinations.

You Can Count On Us

Certain general procedures, many of which do not result from a SRA, should be considered on all
examinations. The examination program should include a section that explains the nature and extent of
these general examination procedures.

Race to the Bottom

The New York Times gave this piece as big a play as you’ll see a non-news story get yesterday, going with a four-line, two-column headline atop page one.

A Times story illustrates a peril that is a virtue to some By Ryan Chittum

This has given rise to concern that a shadow insurance industry is emerging, with less regulation and more potential debt than policyholders know, raising the possibility that some companies will find themselves without enough money to pay future claims.

Shining a Light on a Shadow Industry: Captive Reinsurers

FROM THE NOVEMBER 21, 2011 ISSUE OF NATIONAL UNDERWRITER LIFE & HEALTH MAGAZINE

LifeHealthPro BY WARREN S. HERSCH

It is not often that an industry development excites the collective imaginations of state insurance regulators, high-rolling investment bankers and Wall Street lawyers.