The American Medical Association published research in April 2025 suggesting that US healthcare spending in 2023 was approximately $4.9trn, which, if it were an economy, would place it third globally, ahead of Germany ($4.66trn). Greg Winterton caught up with Matthew Sheridan of Health Data Analytics Institute to get his thoughts on how predictive modelling is helping US health systems to better triage patients and model risk.
Insurers are favouring funded re as it helps firms manage the market and longevity risks associated with writing bulk purchase annuity (BPA) business by reducing capital charges and therefore making PRT deals more competitive.
Unsurprisingly, given its growth and potential for capital optimisation, UK regulators have been carefully watching the increased use of funded re. In June 2023, the Prudential Regulatory Authority (PRA) sent a “Dear CRO’ letter to heads of risk at UK life insurers.
The letter outlined the regulator’s two main concerns from a sectoral review which it had carried out.
“One of the key risks arising in funded re is that firms recapture sub-optimal portfolios with depressed values and with limited ability to be transformed effectively to the firms’ preferred portfolio,” the PRA letter said.
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