Asian insurers slow to embrace central clearing

New clearing rules are not on the agenda of most insurers in Asia, but as derivatives use increases they could become more relevant. Blake Evans-Pritchard reports

A conservative regulatory framework across Asia means many life insurers on the continent are lukewarm about using derivatives, and therefore have not paid too much attention to new clearing rules that are unfolding in the region.

But some think this is about to change, as new risk-based capital (RBC) rules in the region are set to place a greater emphasis on sound risk management and persistently low interest rates continue to squeeze insurers’ investment yields.

“Derivatives [use is] on the