Life insurance companies can attempt to reduce their exposure to interest rate risk by

Name: Life insurance companies can attempt to reduce their exposure to interest rate risk by
Brand: Quizplus
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Question

Life insurance companies can attempt to reduce their exposure to interest rate risk by ​

Quizplus · Accepted Answer

Life insurance companies can reduce their exposure to interest rate risk by increasing their proportion of short-term assets. This allows them to more quickly adjust to changes in interest rates, as short-term assets can be more easily and quickly reallocated or reinvested at new rates compared to long-term assets.

Life Insurance Companies Can Attempt to Reduce Their Exposure to Interest