Low global interest rates will continue to put pressure on insurers' profitability and solvency, according to investor services firm Moody's. The report said that the industry is expected to lose $US1 trillion ($A1.28 trillion) in revenue this year, with insurers losing more than half of their market share from last year. Although the impact on life insurers' profits will be limited, the investment income of the global life insurance industry will decline by $20bn to $40bn this year and is something that will be felt by policy holders, predicted Benjamin Serra, vice-president and senior credit officer at Moody's. He added that global non-life insurers' investment income is also likely to decline in 2017 by about $5bn to $15bn.
Low global interest rates will continue to put pressure on insurers' profitability and solvency, according to investor services firm Moody's. This is despite a rise in rates since the third quarter of 2016. Although the impact on life insurers' profits will be limited, the investment income of the global life insurance industry will decline by $20bn to $40bn this year and is something that will be felt by policy holders, predicted Benjamin Serra, vice-president and senior credit officer at Moody's. He added that global non-life insurers' investment income is also likely to decline in 2017 by about $5bn to $15bn.