Liquidity risk management: An area of increased focus for insurers
3 July 2019
Liquidity risk management: An area of increased focus for insurers
It is important for firms to consider and manage their risk exposures from a liquidity perspective and not just a capital perspective. Managing liquidity requires a different approach from managing capital and must often be considered over different, typically much shorter, time periods. This paper provides some context for a discussion of insurer liquidity risk, exploring sources of that risk and providing some examples of where it has challenged insurers in the past.