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The low interest rate environment

ByNoriyuki Kogo, Franck Ludwig, Takeshi Niwa, Russell Ward, Freek Zandbergen, and Sihong Zhu
8 November 2021

In this paper, we address the key challenges that insurers face in the continuous decrease of interest rates over the past decades. We discuss how to deal with the current low interest rate situation in terms of risk, capital and balance sheet management, and investment strategies. We also zoom in on the impact of product development, where we observe a clear reduction of guarantees and a transfer of risks towards the customer.


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About the Author(s)

Franck Ludwig

Takeshi Niwa

Russell Ward

Freek Zandbergen

Sihong Zhu

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