Taiwan Insurers Cut FX Hedging to Lowest Since at Least 2020

Taiwan’s life insurers lowered their hedging against foreign exchange risk to the lowest since at least 2020, as the industry prepared for new accounting rules that ease the burden of protecting against swings in the local currency.

The sector’s hedging ratio dropped to 50.23% in December from 59.03% a month earlier, according to data released by the Financial Supervisory Commission on Tuesday in Taipei. That was the lowest since 2020, when the regulator first began collecting the data.