True North(@TNorth):Jeff Walton says growing private credit exposure in the life insurance industry is worth watching, but comparing the risk directly to a bank run misses how insurance actually works. Life insurance policies have contractual terms that make the liabilities behave very differently from bank deposits, especially during periods of stress. At the same time, private credit exposure across the life insurance industry has roughly doubled since 2007. “The life insurance industry itself literally can’t have a bank run. It’s like, not everybody is going to go to the life insurance industry at the same time and pull out their life insurance policy.”

2026.09.10 20:00

Jeff Walton says growing private credit exposure in the life insurance industry is worth watching, but comparing the risk directly to a bank run misses how insurance actually works. Life insurance policies have contractual terms that make the liabilities behave very differently from bank deposits, especially during periods of stress. At the same time, private credit exposure across the life insurance industry has roughly doubled since 2007. “The life insurance industry itself literally can’t have a bank run. It’s like, not everybody is going to go to the life insurance industry at the same time and pull out their life insurance policy.” - @PunterJeff