Lawsky Targets $48 Billion Backed by Shadow Insurance
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Regulators should halt approvals of life insurance deals that mask risk while watchdogs investigate past transactions that allowed companies to shift liabilities, New York’s financial services overseer said.
Carriers in New York had $48 billion in “shadow insurance,” according to a report today from Benjamin Lawsky, superintendent of the New York State Department of Financial Services. Lawsky has been investigating since July transactions that life insurers conduct with subsidiaries, known as captives.