ABSTRACT
The investments made by insurance companies need to be done in the best interest of the policyholders. Traditionally this has meant that the investments have been limited by regulatory requirements, and it has usually not been enough with the use of ALM techniques such as immunization; see Section 3.2.2.2. The limits could have been both on the type of permitted assets and on the maximum share of that asset, for example, 25% of the total assets invested.
