I agree with this disclosure requirement to a large degree. I wonder if the details about the level of disclosure detail should also apply to ALL P&C insurers with long-tail line liabilities on their books… especially A&E claims? One thing that I would refrain from is disclosure of portfolio details that its clients provided to AIG or other insurers, assuming confidentiality.
I am especially interested in the level of details that the SEC requested regarding reinsurance calculations. There is a fundamental level of reinsurance calculation detail that would be helpful, and further details should be withheld until a specific question arises about an issue.
The SEC is about a dozen years late on this issue, despite the fact that SOX was in place at the time of AIGs ‘near’ meltdown. This begs the obvious questions; who headed AIG and the SEC and the NY SID at that time? For AIG, who knew about their CDO exposure and when did they know it? For the SEC and NY SID; why didn’t ERM issues arise to fly flags about AIGs risk levels?
I agree with this disclosure requirement to a large degree. I wonder if the details about the level of disclosure detail should also apply to ALL P&C insurers with long-tail line liabilities on their books… especially A&E claims? One thing that I would refrain from is disclosure of portfolio details that its clients provided to AIG or other insurers, assuming confidentiality.
I am especially interested in the level of details that the SEC requested regarding reinsurance calculations. There is a fundamental level of reinsurance calculation detail that would be helpful, and further details should be withheld until a specific question arises about an issue.
The SEC is about a dozen years late on this issue, despite the fact that SOX was in place at the time of AIGs ‘near’ meltdown. This begs the obvious questions; who headed AIG and the SEC and the NY SID at that time? For AIG, who knew about their CDO exposure and when did they know it? For the SEC and NY SID; why didn’t ERM issues arise to fly flags about AIGs risk levels?