Business Wire

The Geneva Association Report: Prolonged Low Interest Rates a Complex but Manageable Headwind for Life Insurers

Del

The effects of prolonged low interest rates on life insurers represent a complex but manageable headwind for the industry as it continues to adapt its business model in response, according to a new research report published today by The Geneva Association, the leading international think tank of the insurance industry.

The study The ‘Low for Long’ Challenge: Socio-economic implications and the life insurance industry’s response, based on insights from senior industry leaders, analyses the impact that low interest rates have on life insurers, their customers and society. The broader context centres on the question of whether an extended period of low interest rates could impair the socio-economic role life insurers have played for many years.

Anna Maria D’Hulster, Secretary General of The Geneva Association, said: “The role of life insurance in helping individuals achieve peace of mind and financial security is significant. In a low interest rate environment, insurers have an even bigger role to play as individuals may struggle to find reliable retirement solutions with appropriate returns. Life insurers have come a long way in tackling the current challenges exposed by the current macro-financial environment, and industry leaders are reasonably confident that life insurance will continue to play its socio-economic role.”

Low interest rates penalise individual retirement savings and may cause insurers to withdraw certain retirement savings products (especially those with performance guarantees) that customers had previously relied upon, but which can no longer be adequately priced in the current macro-financial environment. At the same time, there is an increasing likelihood that governments will have to cut public retirement benefits that were granted in the past. These factors combined put the socio-economic role of life insurers at centre stage.

Daniel Hofmann, Senior Advisor – Insurance Economics at The Geneva Association and principal author of the report, commented: “In our conversations with senior executives they also made it clear that customers must see value in product offerings. Failing to reach this goal would put at risk the socio-economic role of life insurance at a critical time when ageing societies face a growing need to access dependable and sustainable retirement solutions.”

Interviewed executives highlighted three key priorities as part of the industry’s response to the low interest rate environment:

  • In-force business management, the goal of which is to create more value for customers and other stakeholders by better managing businesses that may have been on the books for decades.
  • Cost reduction, where one of the major challenges arises from complicated IT legacy systems built decades ago. Respondents believed that new technologies represent an opportunity to improve the cost efficiency of life insurers.
  • A new business mix, with the aim to rebalance the portfolio toward products that are better adapted to the current interest rate environment.

The core of the report is based on in-depth interviews with 18 senior executives of large, globally active life insurers, complemented by a quantitative survey completed by all participants. The report was further complemented by industry statistics and balance sheet data of a sample of the five largest life insurers in six key markets (Germany, France, Italy, Japan, the U.S. and the U.K.).

ENDS

Full report: The ‘Low for Long’ Challenge: Socio-economic implications and the life insurance industry’s response

Issue Brief 1: How the life insurance industry is tackling a 'manageable headwind'

Issue Brief 2: Low interest rates may place the life insurance industry's socio-economic role at risk

Infographic: The reaction of life insurers to low interest rates

Interviews with Anna Maria D’Hulster, Secretary General, and Daniel Hofmann, principal author of the report

Contact information

The Geneva Association
Daniel Perez-Whitaker
Director of Communications
+41 44 200 4906
daniel_perezwhitaker@genevaassociation.org
or
Isabel Barratt
Communications Manager
+41 44 200 4996
isabel_barratt@genevaassociation.org

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

Yokogawa Develops N-IO Standard Field Enclosure and Control System Virtualization Platform18.12.2017 02:00Pressemelding

Yokogawa Electric Corporation (TOKYO:6841) announces that it has developed an N-IO standard field enclosure and a control system virtualization platform. The enclosure is a weatherproof remote IO cabinet that stores IO devices used by the CENTUM(R) VP integrated production control system and the ProSafe(R)-RS safety instrumented system, and the virtualization platform enables the control of multiple virtual devices on a single server. By reducing the amount of time and effort to engineer a new system, these solutions help to both speed up project execution and reduce total cost of ownership (TCO). The N-IO standard field enclosure is scheduled to be released in February 2018, and the virtualization platform will be released in May 2018. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171217005010/en/ N-I

Celltrion Receives Positive CHMP Opinion for Herzuma® for Trastuzumab Biosimilar15.12.2017 22:13Pressemelding

Celltrion, Inc. (KOSDAQ: 068270) announced today that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) issued a positive opinion recommending that Herzuma® (trastuzumab biosimilar) be granted marketing authorization in the European Union (EU) for the treatment of patients with early breast cancer, metastatic breast cancer, or metastatic gastric cancer whose tumors have either HER2 overexpression or HER2 gene amplification. The CHMP’s opinion will now be sent to the European Commission (EC) for final review. Herzuma® is a biosimilar to Herceptin®i, a breast cancer and gastric cancer treatment antibody biologic drug developed by Genentech and marketed by Roche. Herceptin® is a blockbuster drug which had worldwide sales of CHF 6.8 billionii (US$6.8 billion) in 2016, of which CHF 2.1 billioniii (US$2.1 billion) was in

Takeda and TiGenix announce that Cx601 (darvadstrocel) has received a positive CHMP opinion to treat complex perianal fistulas in Crohn’s disease15.12.2017 12:34Pressemelding

Takeda Pharmaceutical Company Limited (TSE: 4502) (“Takeda”) and TiGenix NV (Euronext Brussels and NASDAQ: TIG) (“TiGenix”) today announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA), in conjunction with the Committee for Advanced Therapies (CAT), has adopted a positive opinion recommending a marketing authorization (MA) for investigational compound Cx601 (darvadstrocel). Cx601 is expected to be indicated for the treatment of complex perianal fistulas in adult patients with non-active/mildly active luminal Crohn’s disease, when fistulas have shown an inadequate response to at least one conventional or biologic therapy.2 This recommendation marks the first allogeneic stem cell therapy to receive a positive CHMP opinion in Europe. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/201712

Bitcoin Romania and Twispay Announce Integration Partnership Providing Users with the Ability to Purchase Bitcoin with Bank Cards15.12.2017 12:21Pressemelding

Bitcoin Romania, leading Eastern European Bitcoin exchange & brokerage firm, and Twispay, Swiss-owned European payment processor and FinTech pioneer, today announced the availability of a payment integration that allows a global clientele to acquire Bitcoin and Ethereum cryptocurrencies using Visa and Mastercard bank cards. Unprecedented in Romania, this is one of the first East-Central European integration partnerships that allow consumers to use their cards to purchase cryptocurrency. Until recently, investors could only acquire cryptocurrencies through bank transfers and cash deposits, but the volatility of cryptocurrency markets dictates the need for additional operational flexibility. Investors require faster, safer, more reliable, and more comfortable ways to complete purchases. “One minute can make the difference between a million lost and a million earned. That is pr

Upon Conclusion of the Fourth Annual Forum for Promoting Peace in Muslim Societies, Scholars and Intellectuals Visit the Louvre Abu Dhabi Museum15.12.2017 11:38Pressemelding

A high-level delegation of dignitaries, scholars and intellectuals participating in the fourth annual Forum for Promoting Peace in Muslim Societies, visited the Louvre Abu Dhabi museum. The delegation was headed by H.E Mustafa Ceric, former Grand Mufti of Bosnia; alongside Sheikh Mohammad Mukhtar Ould Imbala, Head of Mauritania’s Fatwa & Grievances Supreme Council; H.E Amar Mirghani Hussein, Sudanese Minister of (religious) Guidance and Endowments; and H.E Salho Jay, Imam of the Juma Masjid in South Africa. The Forum was held in Abu Dhabi from 11-13 December 2017, with the participation of more than 700 scholars, intellectuals and religious dignitaries from around the world. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171215005255/en/ Group Photo of the Scholars and Intellectuals during their visit to the L

Kennedy Wilson Acquires 124-Unit Northbank Apartments in Dublin, Ireland for €45 Million15.12.2017 11:00Pressemelding

Global real estate investment company Kennedy Wilson (NYSE: KW) announces that it has acquired Northbank Apartments, a wholly-owned 124-unit apartment community in Dublin’s North Docks, for €45 million from Jarmar Properties Limited (In Receivership) acting through David Carson of Deloitte as Statutory Receiver, the lender being the National Asset Management Agency (“NAMA”). Situated in Dublin’s North Docks, Northbank is located just 50 meters from Kennedy Wilson’s existing 84-unit Liffey Trust apartments. The two buildings benefit from great transport links as the LUAS Red line is immediately adjacent connecting to Dublin’s city centre and main train stations in five minutes. “The successful acquisition of Northbank in such close proximity to our Liffey Trust asset allows us to leverage our existing presence and implement our value-add asset management strategy, including a

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom