Rising yields create an attractive environment for big fixed income allocators such as life insurance companies, but portfolio repositioning is a double-edged sword — especially if one is carrying unrealised losses from last year’s market downturn.
More exposure to risky assets, and better asset liability management and ESG practices are among the focuses of Chinese life insurance companies in 2022.
The draft guidelines form part of the new C-Ross solvency system, to which insurers in China must adapt over the next three years. They include reviewing asset-liability management.