The Taiwan Futures Exchange (TAIFEX) has urged insurers operating in Taiwan to hedge currency risk so they minimise the effects of a potential drop in the US dollar’s value on their investments.

The call came amid a report that said an estimated NT$111.6 billion in currency losses were incurred by Taiwanese insurers in the first seven months this year because of heavy US dollar positions.

Taiwan’s financial regulator and industry experts have urged local insurers to hedge currency risk to reduce the impact of the fall of the US dollar on investments.

TAIFEX co-hosted a forum with the Taiwan Insurance Guaranty Fund recently to help insurers use a set of local diversified hedging tools to lessen the threat.

The exchange has also been launching its own innovative currency products.