Analysis of life insurers’ assets and investments in 2010 reveals an industry in recovery from the credit crisis but facing new and longer-term challenges stemming from the lowest interest rates seen since the 1950′s, according to a new study.
Conning Research & Consulting, a unit of Conning & Company, Hartford Conn., reaches this conclusion in a study of life industry investments for the 2006-2010 period. The report, “Life Insurance Industry Investments: Investigating Interest Rate and Sovereign Risk,” examines the industry as a whole and for four underwriting market peer groups.
The study also provides detail regarding the industry’s position at the start of 2011. And it analyzes how the prolonged low interest rate environment and other challenges may influence insurers’ strategic investment decisions in the future.