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Insurance Risk Warning

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Insurance Risk Warning

B
Benzinga

7 Views • Apr 21, 2026

Description

Iowa Insurance Commissioner Doug Ommen warned that private equity firms have redirected policyholder funds into riskier private credit and structured securities. Iowa oversees $1.3T in insurance assets and $449B in offshore reserve funds. Insurers have transferred $1T+ in obligations to offshore reinsurers in Bermuda and the Cayman Islands. Analysts warned the trend could trigger a financial crisis, citing a case where $7B in liabilities were backed by just $200M in real assets.