categorytitle / Research Update .
  • time : 10:1:21
  • Date : Sat Oct 16, 2021
  • news code : 4973
Research Report on Life Insurance Securitization
Securitization of life insurance could help reduce unproductive investments in markets such as real estate, gold, etc. It will also allow the insurance industry to exploit the capital market capacities in order to finance and cover risks while at the same time, by helping grow the capital market and attracting liquidity, it will contain the unbridled inflation.
The results of a research report entitled “Life Insurance Securitization” was held on Wednesday, October 13, 2021, with the participation of CII’s Board of Management and senior managers and the members of the Life Insurance Development Committees of IRC, according to Public Relations Office, IRC.

Securities are some of the most significant instruments in financial risk management of the insurance companies and it will instigate a direct relationship between the insurance industry and the capital market. At the meantime, due to its long term nature and the ability to create investment opportunity, life insurance among other insurance lines, has a special place.  Insurance industry in order to fully enjoy life insurance benefits and to avoid the lengthy interval between premium payment and taking over liabilities has historically used various instruments and strategies including life insurance securities that are being widely used across the world. Given the significance of this issue, IRC intended to carry out a study on the securitization of life insurances.

Prepared by Alireza Khazaee, Ph.D. candidate in economics from Shahid Beheshti University and with the cooperation of Dr. Mitra Ghanbarzadeh, Research Associate and Director of Personal Insurance Research Group of IRC, the research report reviews some of the aspects of life insurances securitization and its various qualities and dimensions. The report also features the existing potentials of exploiting life insurance securities and some strategies to strengthen their applications.

According to the study findings, life insurance securitization is one of the financial instruments that help insurers increase their liquidities by converting their non-cash assets and long-term loans into financial resources. It also enables the investors to enhance their risk management and achieve higher adjusted risk returns and liquidity. Life securitization transfers insurer’s risks to the capital markets. It is also an appropriate instrument for managing investment of the funds that will eventually lead to an increase in life business returns and demands.  

 
Those interested to access and download the Persian full text of the study, please visit http://www.irc.ac.ir/fa-IR/Irc/4946/Articles/view/14643/1493.

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