The basis risk in the different life expectancies between insured and general populations is manageable and not a barrier to the development of the longevity derisking market, according to research by ...

There may be no buy-side firms on the Bank of England’s working group on sterling risk-free reference rates, but scrapping Libor may prove to be as much of a headache for UK insurers as for banks.

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...