Time: 2:00 p.m. – 3:00 noon EDT

 

Presenters:
Carl Terzer, Cap Visors
Raghu Ramachandran, SP Global

 

Program Content:
This webinar focuses on the single biggest issue facing insurers: the Fed’s plan to hold rates at zero for the next three years coupled with a new policy of allowing inflation to fluctuate around, and possibly above, 2% without their usual reaction of a rate increase. This scenario presents the fairly high possibility of negative “real” returns on investment grade bond portfolios which are typically 70-90% of a captive’s investments. Major research firms JP Morgan, BlackRock, et.al.) are projecting expected returns of 0-2 % for the next few years for investment grade bonds. With an inflation rate expected to average 2%, insurers could easily fail their basic investment objective of “preservation of principal.”
The problem with bonds:
  • 2020 Fed Policy actions
    • Interest rates
    • Bond buying
  • Recent policy changes and 2022 outlook beyond
  • The problem:
    • Bond returns and inflation
    • REG 114 restrictions and other constraints
  • Bond risks
    • Credit
    • Duration/interest rate
    • Other
  • Possible solutions:
    • Mandate changes
    • New asset classes
  • How implement changes
    • Reassessing risk tolerance
    • Passive vs Active management
    • IPS and guideline modifications
    • Negotiating with Fronts
Credits:
All participants must attend the webinar in its entirety to receive credit.
The following credits are available upon the successful completion
   1 ACI CE credit
   1 ICCIE Teleconference credit
CPE credits are only available through special arrangements with ICCIE

 

Delivery Method: Computer Only
 
Tuition:
   $100 per ACI designation graduate
   $100 per attendee from companies with employees enrolled in ICCIE
   $100 per ICCIE modular student
   $75 per ACI Alumni Network member
 
Designation students– this offering fulfills one teleconference requirement.  Please contact the ICCIE office at info@iccie.org or 802-651-9050