Magazine date:
Jan 2017 According to Moody’s, the lingering environment of low interest rate has shifted life insurance outlooks from stable to negative for the year 2017. The current level of interest rates reduces investment returns and profitability. The rating agency has also pointed to other unfavorable factors such as financial markets volatility and aggravating geopolitical risks.
Market volatility discourages policyholders from underwriting insurance policies without minimum guaranteed interest rate. Moreover, the numerous legal amendments in the United States and Europe disrupt the sale of available products and reduce profits.
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