"Global Insurer Banana Skins Are Regulation and Investments"
via Centre for the Study of Financial Innovation
CSFI's survey report identifies the risks that the global insurance industry is/has been facing for the early part of 2013. The industry still seems to be suffering from the lingering effects of the global financial crisis and with the constantly uncertain outlook of the economy. Another factor hurting profitability is the excess capacity in the non-life sector, although there are signs of improvement in the industry's anxiety level.
In regards to the results of the survey, the burden of regulation was found to be the biggest risk indicated by insurers. This fear exists as survey-takers believe that the bulk of initiatives will provide the industry with large costs and have a negative effect of company management. The second largest concern was poor investment performance, with a major focus on low interest rates and the uncertain macro-economic environment. The survey found that insurers have found it very difficult to achieve necessary returns after five years of low yields.