The pandemic effect on the U.S. labor force
Four charts that provide historical context around the condition of the U.S. labor market.
The life insurance industry across the globe is undergoing a major transformation in the face of a rapidly changing economic and regulatory landscape. The risk of sharp increases in rates and/or declines in the equity markets in the United States as well as in Europe, Japan, and elsewhere, together with recent concerns about a deflationary spiral, have helped make hedging strategies a major area of concern for insurers. Regulatory changes, such as the Dodd-Frank Act in the United States, and Solvency II and EMIR in Europe, are also likely to have a significant impact on the usage of derivatives and how these hedging strategies are deployed.
To explore trends in risk management practices and derivative usage within the insurance industry, Milliman conducted a global survey of life insurance companies that received a large number of responses from across the globe, including many of the largest companies in the industry. The findings provide an overview of current usage and practices, as well as a perspective on how derivative usage is likely to change in the future.
Some of the key results and findings from the survey include:
Milliman Derivatives Survey 2013
Our survey explores hedging strategies, which are a major area of concern for insurers due to the risk of sharp increases in life insurance premium rates, declines in the equity markets around the world, and concerns about a deflationary spiral.