Insurers reappraise forex risk

Increasing currency volatility has prompted a reappraisal of insurers’ foreign exchange hedging approach – a phenomenon that will be accelerated, particularly in the Nordic regions, with the advent of Solvency II. Laurie Carver reports

staffan-hansen-spp

The continued sovereign debt crisis of industrialised countries has been the spur for heightened volatility in exchange rates, with the eurozone’s woes putting particular pressure on the single currency. The euro has plummeted nearly 10% against sterling this year, with E1 currently buying 82p and the near-parity in December 2008 a distant memory. Although the US has its own fiscal problems, in June the euro breached the $1.20 barrier for the first time since March 2006, having traded at $1.50

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here