Insurers 'should be exempt from initial margining requirements' on ALM hedges

No economic need for initial margin on non-centrally cleared derivatives, argues Insurance Europe

Insurers should be exempt from posting initial margin under new global standards on derivatives and should not be restricted in their use of assets backing policyholder liabilities as collateral, according to Insurance Europe.

A second consultation on the proposals, drawn up by a joint working group of the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (Iosco), covering over-the-counter derivatives that are not centrally cleared closed earlier