Corporate Hedging in the Insurance Industry: The Use of Financial Derivatives by US Insurers [Discussion]

Derivatives can be used effectively as financial risk management tools, and the derivatives markets have grown and evolved considerably over the last several years in response to the complex risk profiles currently facing firms participating in today's global economy. More specifically, many insurers have entered these markets in an attempt to manage the interest rate, equity and foreign exchange rate risks to which they are exposed as a result of the products they offer and the makeup of their assets.

[Discussion begins on page 28 of the PDF.]