RIJ and ChatGPT Discuss ‘Funding Short’

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.

Warring Watchdogs: NAIC and FIO

'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 to eliminate the FIO.

ChatGPT: Social Security Is No ‘Ponzi Scheme’

'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 Security poster.)
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The Stakes in the Romney-Obama Contest

Expect big changes next January? Think again. While the candidates' economic philosophies and positions are dramatically different, divided government will prevent either from bringing his version of Morning to America, predicts a Wharton School professor.

To De-Risk or Re-Risk, That Is The Question

Pension fund managers across the Pond are feeling boxed-in. The author, European head of institutional solutions at SEI, feels their pain in an essay that first appeared in IPE.com.
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Warring Watchdogs: NAIC and FIO

'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 to eliminate the FIO.

Britain adjusts to universal auto-enrollment

“Many organizations are still in a head-in-sand mode,” said Dean Wetton, a pension consultant. “Auto-enrollment is lost somewhere between payroll, HR and the pensions department."

DALBAR validates Pacific Life funds as QDIAs

The PL Portfolio Optimization Funds are five target-risk fund-of-funds, ranging from conservative to aggressive, that are designed to offer investors one-step diversification.