On May 23-24, the Annual Meeting onways to enhance the attractiveness of Life products and segregated funds, organized by “Itinerari Previdenziali” in collaboration with ANIA was held in Bologna.
During the conference, IVASS’s Secretary General, Stefano De Polis, highlighted the recent increase of the interest rates, which in 2023 led to a progressive contraction in the net balance of technical cash flows for the fife insurance sector.
Among the proposed solutions, the Secretary General urged the insurance companies to identify lines of action that duly consider the liquidity risk, and strengthen its management. To this end, Mr De Polis specified that prudential rules alone are not enough, instead, the design of the products shall consider the liquidity of liabilities and emphasize the inherently insurance-related role of the policies and the role as medium to long-term investments.
The Secretary General stressed that a contractual definition of cash flows would make the timing and amount of future payments more predictable, helping to contain liquidity risk.