Life insurer chief financial officers may be shifting toward more use of economic capital principles when managing company capital.
About 67% of life company CFOs now say they are using regulatory or rating agency capital ratios to manage their overall business, up from 60% in January 2008, according to Towers Watson & Company, New York (NYSE:TW).
But only 45% of the life CFOs who participated in a Towers Watson survey said they will use regulatory and rating agency ratios to manage their companies over the next 12 months.
About 21% of the participating CFOs said they plan to make more use of the economic capital concept in the next year; about 10% are using that approach today.