Rising interest rates pose challenge for Asia insurers

The prospect of interest rate rises is a double-edged sword for Asia’s insurers: persistent low rates have left them grasping for decent returns but any rise in rates could herald an increase in lapses. Effective asset liability management is more critical than ever


The US Federal Reserve is unwinding its monetary stimulus programme as its economy gains strength in a move that is seen as paving the way for higher interest rates, possibly in mid-2015. With speculation of a rise in US interest rates it is likely that central banks in Asia will follow suit.

Against this backdrop, companies operating in Asia have been forced to look at how their balance sheet might be impacted by a rise in rates. While so far corporates have been hesitant to hedge out their

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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