AIA looks to address rising hedging challenges
The insurer's head of investment solutions explains why upcoming changes to rules for using derivatives led to it implement a new collateral reporting solution.
As if Covid-19 wasn't enough of a challenge, insurance firms will also have to grapple with multiple rule changes on the use of derivatives contracts in the coming years that will impact how it hedges interest rate and currency fluctuations.
Hong Kong-based insurer AIA has responded by signing up for a service provided by BNP Paribas Securities Services that measures and monitors counterparty and liquidity risks arising from derivative exposures.
“Increasing regula…
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