As commodity prices have risen and lax monetary policy used to stimulate growth, fears of rising inflation have increased. Although a sudden and sustained surge in inflation may still be an outlier risk, life companies know what is at stake should inflation stay high. This is why many of them have sought to take pre-emptive action, to see off the risk of high inflation, which would push up long-term interest rates before it has the chance to manifest itself.
This has helped push up the prices of
The week on Risk.net, December 2–8, 2017Receive this by email