RIJ and ChatGPT Discuss ‘Funding Short’

By Kerry Pechter
Life insurers used to be known as champions of 'asset-liability matching,' or ALM. Today, many of them are doing the opposite by 'funding short.' Here's a transcript of RIJ's recent conversation with ChatGPT about the risks and rewards of funding short, and its role in today's annuity business.
Anecdotal Evidence

What a Mighty Joy That Would Be

By Kerry Pechter
More than a million Americans receive artificial hip, knee or shoulder joints every year. This month, after years of procrastination, I became one of them. Joint surgery is now routine, friends told me. 'For the surgeons,' I said.
Tales from the Crypt

Crypto no longer requires ‘extreme care’ from plan sponsors: DOL

By Editorial Staff
'The Biden administration’s Department of Labor made a choice to put their thumb on the scale,' said U.S. Secretary of Labor Lori Chavez-DeRemer in a May 28 release. 'We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not DC bureaucrats.'
Honorable Mention

The Wheelhouse

By Editorial Staff
Connecticut seeks buyers for insolvent PHL Variable; Offshoring of life insurer liabilities tops $1 trillion. News from: Empower and Sagard, MetLife, WinkIntel, Midland and Dimensional Fund Advisors, Brighthouse Financial, Jackson National Life, iCapital, and The Standard.
Guest Column

Debt, Defaults, and the $36 Trillion Question

By Jason Hsu
'The government blows through more money than we save. Fortunately, the enormous gain in asset value more than offsets the difference,' writes Hsu, founder of Rayliant Global Advisors and adjunct professor in finance at UCLA Anderson School of Management.

LIMRA foresees $400bn+ annuity sales in 2025

By Editorial Staff
'There is greater interest in balancing commission-based products and fee-based products,' said Keith Golembiewski, assistant vice president and director of LIMRA Annuity Research.
Eyebrow-Raisers

Crypto-Blitz: A Timeline of Presidential Emolument

By Kerry Pechter
As president, Donald Trump is in a unique position to connect the public purse to his own purse, and so far he's shown no resistance to temptation. The Wall Street Journal has wondered if he understands money. But he clearly understands crypto.

COVER STORIES YOU MAY HAVE MISSED

May 2025

Warring Watchdogs: NAIC and FIO

By Kerry Pechter
'The Federal Insurance Office conflicts with the states’ role as primary regulators, complicates their engagement with fellow insurance regulators globally, duplicates data collection from our industry,' said state insurance commissioners in asking Congress...
April 2025

ChatGPT: Social Security Is No ‘Ponzi Scheme’

By Kerry Pechter
'Ponzi schemes are private frauds that collapse when new investors stop joining. Social Security is managed by the U.S. government, backed by legal mandates and payroll tax revenues,' ChatGPT told me. (Art: 1980s Social...
March 2025

‘Rated Note Feeders’ Attract NAIC Attention

By Kerry Pechter
Holding a rated note (instead of an unrated private equity fund) can reduce the extra capital that life insurers need to post when buying risky, unrated private assets. Insurance regulators have taken interest in...