Insurers stress liquidity and lapse risk amid concern over interest rate spike
When surrender is an option
For banks, liquidity risk is one of the hottest topics in town. However, insurers – and insurance regulators – are often quick to point out that liquidity risk is less of an issue for their industry than it is for their financial services cousins. Yet, insurance firms have failed due to liquidity risk issues and, in particular, weak surrender and lapse risk management.
For example, in August 1999, US insurer General American Life Insurance Company had to seek state insurance department
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net