As alternative capital continues to rush into the re/insurance industry, we believe that its effects will be felt more deeply in the US insurance market in 2015.

However, with respect to private equity and hedge fund investors who want to invest directly into US insurance companies, the Private Equity Issues (E) Working Group of the US National Association of Insurance Commissioners (NAIC) will continue to study and consider ways "to mitigate or monitor risks associated with private equity/hedge fund ownership or control of insurance company assets, including the development of best practices and consideration of possible changes in NAIC policy positions as deemed appropriate".

Unfortunately, this ongoing regulatory scrutiny of private equity and hedge fund investors is likely to deter at least some such investors, who might conclude that they do not want to be subjected to more complex and/or different rules for investment in US insurance companies than other investors.