Will Taiwan lifers ramp up FX hedging amid tariff turmoil?
As TWD remains strong against the US dollar, Taiwanese life insurers are still poised to act
Taiwanese life insurers are expected to increase foreign exchange hedging after recent tariff-driven market volatility led to losses on their US dollar-denominated assets.
Despite fears that the Taiwan dollar’s recent rally might be more than a short-term fluctuation, high hedging costs have so far delayed action – even as a lack of domestic investment alternatives means lifers are likely to remain heavily exposed to a weakening US dollar.
“So far, we haven’t really seen a lot of pick-up [in
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