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.
The low interest rate environment
8 November 2021
The low interest rate environment