Taiwan Insurers Seek Relief With ‘Rare’ Accounting Change (1)

Taiwan’s life insurers proposed changes to accounting rules that will cut annual hedging costs by an estimated NT$90 billion ($2.9 billion) and provide relief for excessive currency swings, according to a statement from an industry group.

The proposal would allow exchange rate fluctuations to be partially recognized over time, rather than having their full impact reflected immediately, Taiwan’s Life Insurance Association said.

The approach aims to “fairly reflect the industry’s long-term operations” and ensure that insurers are not “forced to engage in excessive currency hedging,” according to the statement.

The move comes as hedging costs for Taiwan’s insurers have ...