Taiwan Eases Life Insurer FX Management with Reserve Flexibility
- Changes could more than triple industry’s FX hedging reserves
- Hedging costs jumped on wide gap between US, Taiwan rates
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Taiwan’s Financial Supervisory Commission is taking steps to reduce the burden of life insurers’ foreign-exchange hedging costs, which have risen because of the wide gap between local and US interest rates.
The island’s insurers will be allowed to apply to increase FX volatility reserves from other reserve pools, the FSC’s Insurance Bureau Deputy Director General Tsai Huo-yen said at a briefing Thursday in Taipei.