In 2011, life insurers started to feel meaningful effects from the low interest rate environment, including declining sales, revenue, profitability and company valuations. If interest rates continue to stay low - and it appears likely that they will - then life insurers’ financial pain will be broader and deeper. This preview of Top Insurance Industry Issues in 2012 addresses the impact of persistently low interest rates and strategic options for coping with it.
PwC will release the complete edition of Top Insurance Industry Issues in 2012 by mid-March 2012. In addition to the effect of the low interest rate environment on life insurers, the publication will address: