Why is the non-life insurance less sensitive to interest rate risk?
they don’t offer GICs or fixed rate products. Life insurance companies are subject to disintermediation
Thanks…It makes more sense to me now, I simply memorized it before.
Also, for non-life insurance companies:
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Liability durations tend to be relatively short
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The liability structure is a function of the product mix
Also, for non-life insurance companies:
-
Liability durations tend to be relatively short
-
The liability structure is a function of the product mix