Low interest rates raise insurance insolvency risk
Saturday, 04 29 2017, Category: Rating, Country: World
Interest rates globally remain very low and will further pressure insurers' investment returns in the next few years. For non-life insurers this will mean falling investment income, but for life insurers the insolvency risk is rising, according to Moody’s.
“Insurance companies continue to invest at yields that are lower than the yield they have on their existing portfolio, so the investment yield will continue to decline, at least in 2017 and probably in the future years as well,” said Benjamin Serra, vice president – senior credit officer, at a Moody’s April 26 press event in London.
Source: Intelligent Insurer