Risk in Insurance
David discusses the concept of permanent capital in insurance, highlighting the distinct risk models of private equity-backed insurers compared to traditional ones. He expresses concern over the increasing use of private credit and offshore reinsurance, particularly in pension risk transfers, suggesting that while these strategies may seem advantageous, they carry inherent risks. Drawing on Minsky's theories, he warns that what appears stable can lead to instability, raising questions about the sustainability of current practices in the industry.In this clip
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