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In partnership with Wellington Management
With Asia’s life insurers facing heightened sensitivity to interest rates, exacerbated by regulatory changes with the introduction of risk-based capital (RBC) regimes and the new IFRS 9 and 17 accounting standards, a considered approach to diversification across fixed income, equities, derivatives and alternative assets may offer a more efficient means to address the duration gap between assets and liabilities, say Max Davies, CFA, CAIA (Insurance Strategist) and Francisco Sebastian, …
Five diversification approaches for Asian life insurers seeking to mitigate interest-rate risk