Valuing insurers' liabilities during crises: What EU policymakers should not do

March 18, 2011

In crises, insurance companies' asset values may fall significantly without a corresponding drop in their liabilities. European insurers have argued that their liabilities should be discounted by a higher rate during crises, lest regulations force them to raise more capital at exactly the wrong time. This column argues that that would be the wrong approach to the problem.

Published on VoxEU.org

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