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NAIC tightens checks on private credit and offshore reinsurance
The NAIC estimates US insurers held about $1.2 trillion in private credit at the end of 2025, or roughly 13% of cash and invested assets and 21% of bond holdings.
US state insurance regulators, through the National Association of Insurance Commissioners, are tightening how they assess private credit, complex investments, and offshore reinsurance, aiming to improve visibility into risks behind life insurers’ capital and policyholder guarantees, Insurance Business reports.
The NAIC said the changes were outlined in response to a request from Senator Elizabeth Warren for information about insurers’ exposure to private credit, private equity, and affiliated investments, as private assets take up a significant share of insurers’ portfolios.
The NAIC estimates that US insurers held about $1.2 trillion in private credit at the end of 2025, equal to roughly 13% of cash and invested assets and 21% of bond holdings, and said the focus includes investments where credit quality, valuation, or liquidity can be harder to assess.
NAIC leaders said regulators are using updated capital requirements, reporting standards, supervisory tools, and analytical capabilities to address emerging risks while keeping an emphasis on insurer solvency and policyholder protection.