Korea insurers increase risk to counter falling interest rates

Loose monetary policy leaves firms with no option but to buy overseas assets

bank-of-korea
Bank of Korea: two rate drops in 2015

Central banks across Asia have loosened interest rates this year but the Bank of Korea has been particularly aggressive, lowering rates twice between January and June to a record low of 1.5%, and as a result domestic insurers are increasing their risk appetite to counter the lower yield on their traditional bond portfolios.

The widespread rate cuts, from China to New Zealand, are posing problems for insurers across the region which are trying to meet the return targets on business written when r

To continue reading...

You must be signed in to use this feature.

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 indvidual account here: