All,
Why is it that regulatory considerations are less onerous for non-life insurance companies as compared to life insurance?
To me, it’d be the opposite as operational results from non-life cos are much less predictable and volatile. Their risk tolerance is lower and duration lower, so it would make sense to be more restrictive (e.g. on asset classes or maturities) to guarantee payouts are made when claims occur. Why is the opposite true?
Thanks!