economy

Are insurers becoming dangerously addicted to private credit ratings?

We should worry about what happens when regulatory arbitrage goes unchecked

Are insurers becoming dangerously addicted to private credit ratings?

TL;DR

  • Insurers are developing an addiction to private credit ratings.
  • Regulatory arbitrage is a concern when it goes unchecked.
  • The unchecked nature of regulatory arbitrage could lead to dangerous situations.