Insurance Companies in Emerging Markets

21 Pages Posted: 3 Mar 2006

See all articles by Janet Kong

Janet Kong

affiliation not provided to SSRN

Manmohan Singh

International Monetary Fund (IMF)

Date Written: May 2005


This paper focuses on asset allocation decisions of life insurance companies in emerging markets. Mature market insurers allocate only a small fraction of their assets to emerging markets because of regulatory constraints, rating pressures, and currency risk. However, global insurers invest directly in emerging markets by setting up subsidiaries rather than through portfolio investment, and this trend is increasing. Local insurers largely remain captive investors of local instruments and provide stability to the domestic securities market. The regulatory regime and the liquidity and depth of local markets play an important role in asset allocation decisions of insurers. Insurance companies are increasingly adopting asset liability management and risk control measures. However, insufficiently developed local markets and regulatory interventions on the liabilities side often limit optimal asset allocation.

Keywords: Insurance companies, emerging markets, asset allocation, investments

JEL Classification: G22, G15, G18, G11, F37

Suggested Citation

Kong, Janet and Singh, Manmohan, Insurance Companies in Emerging Markets (May 2005). IMF Working Paper, Vol. , pp. 1-21, 2005. Available at SSRN:

Janet Kong (Contact Author)

affiliation not provided to SSRN

No Address Available

Manmohan Singh

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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