Duration mismatch still a concern for Asian insurers

Bond and derivative markets not deep or liquid enough

A hand measuring a gap with a ruler

Asian bond markets are still not deep and liquid enough for insurers to hedge out duration mismatches, while a weakening of bank balance sheets means lenders are less willing to provide synthetic overlays to extend the length of asset portfolios.

Speaking at the Insurance Risk Asia conference in Hong Kong today, panellists on a chief risk officer roundtable said they are looking to reduce the tenor of products offered as a result, in order to manage this mismatch.

Mark Stamper, regional chief

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