Insurance Companies in Emerging Markets /

This paper focuses on asset allocation decisions of life insurance companies in emerging markets. Mature market insurers allocate only a small fraction of their assets to emerging markets because of regulatory constraints, rating pressures, and currency risk. However, global insurers invest directly...

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Bibliographic Details
Main Author: Kong, Janet
Other Authors: Singh, Manmohan
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2005.
Series:IMF Working Papers; Working Paper ; No. 2005/088
Online Access:Full text available on IMF
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245 1 0 |a Insurance Companies in Emerging Markets /  |c Janet Kong, Manmohan Singh. 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a This paper focuses on asset allocation decisions of life insurance companies in emerging markets. Mature market insurers allocate only a small fraction of their assets to emerging markets because of regulatory constraints, rating pressures, and currency risk. However, global insurers invest directly in emerging markets by setting up subsidiaries rather than through portfolio investment, and this trend is increasing. Local insurers largely remain captive investors of local instruments and provide stability to the domestic securities market. The regulatory regime and the liquidity and depth of local markets play an important role in asset allocation decisions of insurers. Insurance companies are increasingly adopting asset liability management and risk control measures. However, insufficiently developed local markets and regulatory interventions on the liabilities side often limit optimal asset allocation. 
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700 1 |a Singh, Manmohan. 
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