Insurance EuropeInsurance Europe
Position Paper
Response to consultation on FX Financial Instruments

Derivatives are often a key part of insurers’ risk management strategies, used to hedge risk exposures by matching the profile of liabilities, for securing a pay-off promise made to policyholders or for hedging the value of an expected claim denominated in a foreign currency. To a lesser extent, where the local prudential regime does not prohibit it, derivatives are also used by insurers for achieving portfolio diversification across assets and currencies.

Published 9 May 2014
Cristina Mihai
Cristina Mihai
Head of prudential regulation & international affairs