Insurance Day
Demand for long-duration assets limits investment yield for insurers
Many market observers were surprised by the sharp decline in interest rates in Europe this summer. While economic indicators
were slowing and the European Central Bank (ECB) was preparing the market for more bond purchasing, the speed and aggressiveness
of the move came as a surprise. One culprit for sure is Europe’s life insurance industry, driven by Solvency II asset liability
management (ALM).