"Report: Insurers Must Adapt to Changing Landscape, Not Wait for Improvement"
Original Article by Phil Gusman of PropertyCasualty360.com
With economic, interest-rate and competitive challenges expected to continue in 2013, Conning Research and Consulting latest report, "U.S. and Global Insurance Industry Outlook 2013, Economic, Capital Markets, and Regulatory Challenges Continue: Nothing to Be Gained by Waiting for Things to Get Better," focuses on how continued low interest rates will drive investment yields and investment income lower.
Additionally, the report states that "companies will be increasingly compelled to find a way to move forward, no longer willing or able to wait for an improving interest rate environment."
Conning adds, "We believe many companies had been planning on some reversion of interest rates to higher levels, which perhaps has led to some inertia. This inertia is reinforced by conservative investment policies and customary rules of thumb that limit significant change. With the Federal Reserve now pegging its securities purchasing activity to the unemployment rate and GDP growth, interest rates could remain low even longer than previously expected."