Libor takes a back seat as insurers await regulatory clarity

Eiopa silence on discount curves holds back transition plans

The looming, not-quite-certain death of Libor exposes investors to multiple risks, but UK insurers face a unique challenge.

European regulators require insurers to value their liabilities using discount curves derived from Libor-linked swaps. At the same time, UK regulators are pushing financial services firms to start using new risk-free rates (RFRs) such as Sonia – the anointed successors to the old, scandal-struck benchmark. Insurers that adopt Sonia swaps as a liability hedge before the

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