For more than a decade, life insurers have been challenged by a low interest rate environment, creating difficulties in finding acceptable yielding investments, managing spread compression and offering competitive products to consumers. Whether or not related to COVID-19/post-COVID-19 economics, the spike in interest rates over the past year – during which the 10-year U.S. Treasury rate has increased by nearly 100 basis points – could indicate a longer-term trend of rising rates. What would such a trend imply for life and annuity writers? Insurers that are able to react to interest rate changes with agility can remain relevant in an evolving economy, protecting themselves and their policyholders.
Attend this session and you’ll be able to:
• Address considerations for actuaries with respect to inforce management, pricing, and product mix with a focus on managing profitability• Take a product-specific approach, touching on considerations for life products including traditional and interest sensitive life insurance, as well as fixed, indexed, and variable annuity products• Understand potential impacts of a rising interest rate environment on life insurance and annuity inforce and new business.
Track: Protecting Long-Term Economic Progress