Koijen, Ralph S. J.; Yogo, Motohiro - 2014
reinsurers, which are less regulated and unrated off-balance-sheet entities within the same insurance group. U.S. life insurance … using shadow insurance, which capture half of the market share, ceded 25 cents of every dollar insured to shadow reinsurers … in 2012, up from 2 cents in 2002. By relaxing capital requirements, shadow insurance could reduce the marginal cost of …