The profitability of life insurers is at its lowest

According to Standard & Poor's, the profitability of French life insurers is expected to decline by 2020.
The downward pressure of prices and overcapacity will lead to an erosion of the average return on equity (ROE) of around 1 to 1 5% per year over the next four years.

The situation is even more complicated since insurers are using their return on investment to secure their return on equity. This strategy is difficult to maintain with declining interest rates.

Read also:

• 2015 reinsurance market results
• Life insurance: more than 5.9 billion USD unclaimed by beneficiaries
• France: bancassurance is getting established at the expense of direct insurance