Asset/Liability Management for Insurers in the New Era: Focus on Value
DAVID F. BABBEL
(Professor of insurance and finance at the Wharton School, University of Pennsylvania, in Philadelphia. He may be contacted at babbel@wharton.upenn.edu)
380
Abstract
While asset/liability management (A/L M) has been applied widely by insurers for 15 years, it has had mixed results. This article describes how initial efforts were unsuccessful, due to the focus on accounting values rather than economic values. The author asserts that insurers must rectify this misstep before A/L M can become a useful tool for them. Several forces are combining to ensure that this takes place in the near future.
Citation
BABBEL, D.F. (2001), "Asset/Liability Management for Insurers in the New Era: Focus on Value", Journal of Risk Finance, Vol. 3 No. 1, pp. 9-17. https://doi.org/10.1108/eb043479
Publisher
:MCB UP Ltd
Copyright © 2001, MCB UP Limited