Of Special Interest


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23rd January 2013

Report looks at two issues facing insurer CEOs globally

In a report published this week, Standard & Poor's Ratings Services discusses the two issues dominating the agendas of the leading insurers' CEOs around the world: low interest rates and changing regulation("Global Insurance Key Risks And Credit Trends Dominated By Low Interest Rates And Regulation Issues).
The interest rate environment is adversely affecting insurers' credit quality and challenging their business models. Regulatory changes are creating great uncertainty, but may ultimately be either positive or negative for insurers.
The insurance sector is facing an accumulation of risks, owing to adverse global economic conditions, historically low interest rates related to the weak economic trends, and heightened sovereign-related risks. We believe these risks are likely to place downward pressure on insurance ratings globally, as the current negative bias in our rating outlooks for the sector indicates. Regulatory uncertainty adds the potential for rating volatility in the future.