Friday, March 23, 2018

Taiwanese life insurers warned against investment practices

The Financial Supervisory Commission in Taiwan has warned the country’s insurance companies about their risky investment portfolios.

According to FSC vice-chairman Cheng Cheng-mount, fixed-income assets constitute less than 20% of local life insurers’ total investments — compared to between 80% and 90% of the portfolios of their peers abroad.

Cheng revealed the staggering data on the sidelines of a forum on economic trends and the bond market outlook in Taipei.

In addition, Cheng noted that local life insurers had cut their government bond holdings to 8% at the end of last year. The historical average was 10%, he said.

Foreign life insurers traditionally make the majority of their investments in government debt issued in their home markets.

But in Taiwan, local life insurers have raised their overseas investments to levels close to the regulatory ceiling.


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