Fed hike a positive for rate-sensitive insurance products
December 19, 2016 by Warren S. Hersch
The Federal Reserve’s increase in short-term interest rates should benefit life insurers and their policyholders, according to a new report.
Moody’s Investors Service arrives at this conclusion in a Dec. 14 “Sector Comment” report. The research examines the effect of the Federal Reserve’s rate hike on U.S. financial institutions, including banks, life insurers and asset managers.
On Dec. 14, the central bank’s Federal Open Market Committee, the Fed unit that determines monetary policy, increased its benchmark federal funds rate by 25 basis points, following a two-day meeting in Washington. According to a Bloomberg story published on Wednesday in LifeHealthPro, three more quarter-point rate increases are expected in 2017, up from the two previously forecasted in September.
Click HERE to read the full story via LifeHealthPro; free registration
