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Opportunities for insurers: Improved cash management

Opportunities for insurers: Improved cash management

15 October 2025 Fixed income

The capital charge for bank deposits depends not only on the credit rating of the underlying bank, but also the number and quality of other exposures. We explore how the capital treatment of bank deposits for European insurers can be stringent and how using money market funds, which hold a wide range of money market instruments from different issuers (such as short-term government and corporate bonds, commercial paper and certificates) has become much more common among insurers.

However, not all money market funds are equal.

Figure 1: Categories and treatments for money market funds

Picture1 Categories and treatments for money market funds.png

Source: Insight. September 2025. For illustrative purposes only
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