Mixed signals for derivatives
New solvency regulations in Sweden will force life insurers and occupational pension funds to mark their liabilities to market and stress test their positions under a new 'traffic light' regime. While the final result is unclear, the new rules look set to have a mixed impact for derivatives. Christopher Jeffery reports
Sweden's life insurance and occupational pension fund market will see its biggest shake-up for 20 years when planned new solvency rules are introduced in the country on January 1 next year. The most fundamental impact will result in these institutions – like their peers in Denmark before them – marking their liabilities to market for the first time. They will also be subjected to a new 'traffic light' stress test designed to flag up institutions that would suffer solvency issues in times of
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