Samuel Benjamin K260_ Brown

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How do insurance companies participate in forex markets?

Insurance firms hold large international portfolios, creating forex exposure. They hedge liabilities and manage reserves through currency forwards and swaps. Institutions often provide liquidity for insurance hedging. Benefits: stabilizing long-term flows. Risks: disasters or crises may force sudden reallocations. For retail traders, insurance flows are invisible but critical—they add consistency to global currency demand. Insurance companies remind traders that forex serves not just traders but entire industries built on managing uncertainty.