ARTICLE
30 December 2014

Corporate Insurance Advent Calendar - Alternative Capital Increase Influence In US Insurance Market

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Clyde & Co

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Clyde & Co is a leading, sector-focused global law firm with 415 partners, 2200 legal professionals and 3800 staff in over 50 offices and associated offices on six continents. The firm specialises in the sectors that move, build and power our connected world and the insurance that underpins it, namely: transport, infrastructure, energy, trade & commodities and insurance. With a strong focus on developed and emerging markets, the firm is one of the fastest growing law firms in the world with ambitious plans for further growth.
To celebrate the countdown to Christmas, the Corporate Insurance team will be publishing a prediction for 2015 each day.
Singapore Insurance

As alternative capital continues to rush into the re/insurance industry, we believe that its effects will be felt more deeply in the US insurance market in 2015.

However, with respect to private equity and hedge fund investors who want to invest directly into US insurance companies, the Private Equity Issues (E) Working Group of the US National Association of Insurance Commissioners (NAIC) will continue to study and consider ways "to mitigate or monitor risks associated with private equity/hedge fund ownership or control of insurance company assets, including the development of best practices and consideration of possible changes in NAIC policy positions as deemed appropriate".

Unfortunately, this ongoing regulatory scrutiny of private equity and hedge fund investors is likely to deter at least some such investors, who might conclude that they do not want to be subjected to more complex and/or different rules for investment in US insurance companies than other investors.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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