Description: As tariff policies are rapidly changing throughout 2025, the U.S. markets have been reacting in complex ways. In addressing the difference in short and long-term impacts of these policy changes, the importance of resilient and holistic risk management is highlighted in order for companies and investors to find opportunities and mitigate sudden losses.

Description: Asset Liability Management (ALM) is a vital function in insurance operations, focusing on the strategic alignment of assets and liabilities to enhance risk-adjusted returns while ensuring compliance with regulations and fulfilling policyholder commitments. The rise of negative credit spreads poses a fundamental challenge to conventional ALM models, compelling insurance companies to reevaluate their investment strategies, hedging techniques, and risk management practices. This analysis indicates that negative credit spreads bring both considerable challenges and distinct opportunities for insurers. Although they narrow profit margins and complicate traditional spread-based investment approaches, they also offer potential for capital gains and alternative revenue sources for insurers willing to adapt their ALM strategies accordingly.

Description: The article provides a summary of the Drake Risk & Opportunity Forum held on October 21, 2022. The forum was a hybrid conference that attracted more than 200 attendees from 17 states, two countries, 48 employers, and five universities. Following an introduction by the Zimpleman College of Business Dean, the forum held six sessions. First was an insurance company CRO panel followed by a panel of non-insurance company CROs. Gary Zhu shared his outlook for interest rates and capital markets. The fourth panel discussed insurance capital models. The fifth panel discussed environmental, social, and governance (ESG) criteria when building insurance company investment portfolios. The final session of the day was a discussion about the NAIC, how they operate, and their priorities for the coming year.