Regulators Scrutinize Private Equity’s Impact On Insurance
April 5, 2022 by Doug Bailey
While the massive growth in private equity investment in insurtechs continues unabated, private equity is generating new levels of scrutiny from regulators and insurance commissioners concerned about the impact the trend will have on the insurance industry as a whole.
The worry is not so much financial calamity but that the budding insurtech startups attract a new class of investors unfamiliar and unprepared for the regulatory requirements and licensing restrictions of the traditional insurance industry.
“The way that many of these new investors expect short-term and long-term returns is butting up against what regulatory capital requires,” said attorney Greg Hoffnagle, a partner in Goodwin’s financial industry group and insurance practice.
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