Insurance Companies in Emerging Markets
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
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.
Series:
Working Paper No. 05/88
Subject:
Asset prices Emerging markets Financial crisis Insurance Insurance companies International financial markets
English
Publication Date:
May 1, 2005
ISBN/ISSN:
9781451861075/1018-5941
Stock No:
WPIEA2005088
Format:
Paper
Pages:
20
Please address any questions about this title to publications@imf.org