U.S. insurers ‘less exposed’ by Brexit than other sectors
June 29, 2016 by Arthur D. Postal
The anticipated effect of the U.K.’s surprising decision to leave the EU: Consistently low rates
Britain’s Prime Minister David Cameron speaks outside 10 Downing St. in London as his wife Samantha looks on Friday, June 24, 2016. Cameron says he will resign by the time of the Conservative Party conference in the fall. (Photo: Matt Dunham/AP Photo)
WASHINGTON — A sustained period of lower interest rates, with all its negative implications for insurers, is the most likely effect on the American insurance industry as a result of Britain’s unexpected decision to exit the European Union, according to a consensus of rating agencies, insurers and consultants.
“Insurers have been resigned to ‘lower for longer’ interest rates, and the early indications post-Brexit are that that was a wise assessment,” said a top official at a large U.S. insurer who asked not to be named.
That is not to say that the decision was not a shocker.
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