Asset and liability management has always been a particularly thorny problem for life insurers. Risk modelling is full of nuances, such as the calculation of mortality rates (see box). Now, companies in the US are in the midst of a fundamental rethink about the way they manage their liquidity.
Life insurers are set to tap the securitisation market in a big way. According to securitisation specialists Risk spoke to, several insurers are beginning to plan and structure deals. Jack Gibson, life