Insurance regulators respond to ongoing low interest rates
July 14, 2016 by Arthur D. Postal
WASHINGTON — State insurance regulators are considering or phasing in a number of changes aimed at allowing the life insurance industry to cope with what appears will be a protracted period of low interest rates.
Bloomberg News said Tuesday that traders are pricing in “little chance of an interest rate hike in July by the Federal Reserve,” with Sept. 2017 being the first month having even odds of a rate increase.
The problem for insurance regulators has been exacerbated by “Brexit,” the British decision to leave the European Union. In a paper titled “A Closer Look,” Deloitte said the vote, coming a week after the global stakeholder seminar of the International Association of Insurance Supervisors (IAIS) in Hungary, “aptly captures both the irony and uncertainty facing U.S. life insurers.
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