Impact of recent market turbulence on hedging programs for equity-linked guarantees


  • Print
  • Connect
  • Email
  • Facebook
  • Twitter
  • LinkedIn
  • Google+

Financial risk management techniques developed in the past five years have weathered their first significant real-world test. During the market turbulence in the beginning of 2008, insurers with robust hedging strategies saw their equity-linked guarantee products hold up as anticipated. Our survey of 16 companies with such programs examines these results and documents the behavior of a typical yet hypothetical hedging program during this volatile time.