Variable annuities face more hedging challenges in Asia

Variable returns


The Asian variable annuities (VA) market is far from homogenous – and has proven to be a tough market to crack. At one end of the spectrum lies Japan, which is second only to the US globally, in terms of size. The rest of Asia’s VA market lies more at the other end of the scale, and is patchy. Several isolated deals have been done in jurisdictions such as Hong Kong and Australia during the past five years, but they have had limited success. The only significant exception is Korea, which has seen