Libor transition: what you need to know

Published in: Risk management, Corporate strategy, Regulation, Investment risk - strategy, US - Canada - Bermuda

Companies: International Association of Insurance Supervisors, Accenture

Gain expert insight on the transition away from the London inter-bank offered rate (Libor) at the Insurance Risk & Capital Americas virtual conference on 23 September.

Libor is used as a benchmark for insurers' assets and derivatives contracts, and in liability valuation methodologies. It is set to be withdrawn by the end of 2021 as part of the Bank of England's efforts to improve the transparency of interest rate yardsticks.

The International Association of Insurance Supervisors (IAIS) warned in July a considerable number of financial institutions have yet to start, or are still planning, their Libor transition work.

The IAIS called on supervisors to step up their coordination and monitoring efforts at an international level, given the cross-border implications of the transition.

"From a microprudential perspective, transition risks may arise from operational, legal, prudential, conduct, hedging and accounting perspectives," the IAIS noted in its July report.

For insurers, the exposure to Libor on the asset side of their balance sheets mainly comes through derivatives and floating-rate products.

Experts will discuss and exchange ideas on Libor, in association with Accenture, during two discussion groups at the Insurance Risk & Capital Americas virtual conference on Wednesday 23 September.

The Insurance Risk & Capital Americas virtual conference is an exciting new initiative, combining a mixture of live-streamed and pre-recorded content, as well as networking via a dedicated virtual event platform.

It features three tracks covering all aspects of risk, investment and climate issues for re/insurers in the Americas. 

The virtual event is FREE for insurers, regulators and commissioners to attend. Email [email protected] to receive an invitation.

To register for the conference and view the agenda click here

Once registered, the online platform for participating and networking at the virtual event can be found here

Ronan McCaughey