Sep 22, 2026
On September 22, 2026, The Capitol Forum hosted a conference call with Daniel Schwarcz, Fredrikson & Byron Professor of Law and Distinguished University Teaching Professor at the University of Minnesota Law School, to discuss his influential 2015 paper, “The Risks of Shadow Insurance,” and how the concerns it identified more than a decade ago apply to today’s insurance markets.
The discussion examined the risks associated with shadow insurance transactions, in which life insurers transfer liabilities to affiliated captive insurers or special purpose vehicles. Professor Schwarcz’s paper identified potential risks to policyholders, insurers, and the broader financial system, while questioning whether traditional state insurance regulation was equipped to address them.
The conversation revisited these concerns, explored how the insurance and regulatory landscape has evolved since the paper was published, and considered what lessons remain relevant for policymakers and market participants today.
