Accounting for Reinsurance Transactions in the Financial Accounts of the United States
Posted: 17 Oct 2018 Last revised: 25 Jun 2020
Date Written: 2018-10-12
The net worth of households and nonprofit organizations grows by $249 billion to reflect the value of policies that were previously missing from the Financial Accounts of the United States (Financial Accounts). Businesses also capture $81 billion from previously missing policies. The rest of the world (ROW) sector loses $130 billion on net because they are the reinsurer for many of the policies that are newly recorded. This note describes these changes and their associated effects in more detail.
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