This paper explores the risks faced by South African life insurance companies arising from the provision of investment guarantees in products sold. The current thinking and practice of the larger South African life insurance companies regarding investment guarantees is set out following their responses to a survey. The paper examines the forms of investment guarantee available and the business ...

Although the finance literature has devoted a lot of research into development advanced models for improving pricing and hedging performance, there been much less emphasis on approaches to measure dynamic effectiveness. This article discusses statistical framework based regression analysis effectiveness hedges long-term investment guarantees. The importance taking model risk account is emphasiz...

This paper presents a multiple-equilibrium model of the Asian financial crisis. The economy has Krugman-style over-investment caused by weak financial regulation and implicit government guarantees. Following Dooley, the government only has a limited capacity or willingness to honour such guarantees. The model has a unique long-run equilibrium, with over-investment. But in the short run, in whic...

Investment is essential for growth and for job creation. It integrates the EU in global value chains to achieve a stronger economic recovery. EU policies are geared towards increasing investment as part of the recovery. The EU already is the world's largest source and destination of foreign direct investment (FDI), and therefore has a strong interest to facilitate and protect international inve...