UBS Chairman warns of systemic risk in U.S. insurance industry, Bloomberg says

UBS (UBS) Chairman Colm Kelleher has warned about risks in the U.S. insurance industry, citing weak and complex regulations, Ambereen Choudhury of Bloomberg reports. “We’re beginning to see huge rating agency arbitrage in the insurance business… If we look at the insurance business, to me, there is a looming systemic risk coming through and it’s because of lack of effective regulation,” Kelleher said, according to Bloomberg. These comments come as U.S. life insurers have increased private debt investments, allocating nearly one-third of their $5.6T in assets to the sector, up from 22% a decade ago.