Hedging in Insurance Industry.

[pitwen]

Hi all,

I am currently doing a project on hedging in the insurance industry. Wonder what are the typical risk that insurance companies will want to hedge? Any typical examples if possible? Will be thankful if anybody can help!

Regards,
Wen

[mahmedi]

Hello pitwen. That's a very nice questions posed by you. I think one risk that insurance companies might want to hedge would be the underwriting risk which typically is transferring of risk from business corporations or individuals in return of a premium payment. Hope that answers your question