Filed Under:Markets, Company News

Towers Watson Survey: Continuing Low Interests Threaten Life Insurers

Photo credit: Stuart Miles
Photo credit: Stuart Miles

Continuing low interest rates remain the primary concern of nearly half of the chief financial officers at North American life insurance companies, according to a new report.

Professional services firm Towers Watson (NYSE, NASDAQ: TW), New York, released this finding in a summary of results from a survey of North American chief financial officers. Thirty CFOs, 19% of the 162 CFOs invited, participated in the research, titled, “Life Insurance CFO Survey: Low Interest Rate Environment.”

Nearly all respondents (96%) say they have reduced their minimum guarantee on fixed-account products. More than half (56%) have adjusted premium rates, reduced living benefit guarantees or adjusted fees on annuity products (56%). Or they have ceased or significantly curtailed sales of some products (54%). One-quarter have exited product segments, and another 13% plan to do so in the next six months, the survey finds.

Despite their unfavorable near-term outlook on the economy, CFOs are more optimistic about improvements in their financial results.

Featured Video

Most Recent Videos

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.