Why is duration matching central to insurance ALM?

CIIM Practice Questions - CIIM Chartered Insurance Investment Manager Exam

Question Number 5

It guarantees the insurer will never have a loss It eliminates credit risk from the portfolio It limits the change in surplus when interest rates move by aligning asset and liability sensitivities It allows the insurer to skip statutory reporting

✔ Correct Answer:

It limits the change in surplus when interest rates move by aligning asset and liability sensitivities

CIIM Practice Questions - CIIM Chartered Insurance Investment Manager Exam

Question Number 5

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