The influence of interest rate on insurance companies



Year of publication 2017
Type Article in Proceedings
Conference Proceedings of the 9th International Conference on Currency, Banking and International Finance
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords balance sheet; insurance company; life insurance
Description A protracted period of low interest rate threatens the stability of the life insurance industry, especially in the countries, where life insurance with comparatively high guaranteed returns disposed in the past represent a major portion of the total portfolio. The aim of this paper is evaluation of the effects of the actual low interest rate period on the balance sheet of a representative life insurance company, given the actual asset allocation and the outstanding liabilities. To do so, we use simulation of the term structure of interest rates.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.