COVID-19 will hit life insurers hardest

18-03-2020

COVID-19 will hit life insurers hardest

The ripple effect of COVID-19 has now spread deep into global financial markets and falling interest rates are putting increasing pressure on insurers earnings and capital.

"The impact of the virus will depend on what the corporate landscape looks like in the coming months. Some corporations may not even be able to pay premiums at all.” Federico Faccio, senior credit analyst at Fitch Ratings. 

  • Zero-bound interest rates putting pressure on insurers earnings 
  • Life business has substantial exposure on asset side
  • US life insurance industry given negative outlook by Fitch
  • Fears for the deterioration of credit markets

Zero-bound interest rates and depressed asset values are negatively impacting European and US life insurers.


 


COVID-19, Fitch, interest rates, life insurance,

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