Top Insurance industry issues 2012: The impact of persistently low interest rates

January 2012
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Top Insurance industry issues 2012: The impact of persistently low interest rates

At a glance

Life insurers started feeling the effects of low interest rates on their sales, revenue, profitability, and company valuations in 2011, and the trend is expected to continue in 2012. Strategic options are available to help insurance companies manage through this period of decline.

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:

  • Strategic risk management
  • Solvency
  • Dodd-Frank
  • Mergers and acquisitions
  • Global expansion
  • Improving data analysis and use
  • Increasing customer power
  • Policy administration transformation
  • Abandoned property
  • FATCA
  • SSAP 101