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One thought on “Falling interest rate – a potential threat to Life Insurers

  1. It is truely informative article. However, we need to ask oyrsekf that if we go and tell the management that we are not going to sell the product henceforth as guarantee is biting or if we tell the customer that sorry, though we have created expectation of bonuses at the time of selling the policy, but we can not declare expected bonus. How does customer feel?
    So the suggested solution should be the. last step to be followed.
    Instead, we can turn around this problem and ask why my company’s investment team is unable to generate returns for the life fund.
    Why we are not able to persuade regulator to expand the investment avenues which beyond what is prescribed currently. Eg swaps, swap options, mortgage backed securities, alternate investment options. Of course any instrument comes with s cost ( risk) inherent in it.
    In summsy, I would prefer enhancing my returns by finding appropriate solution rather than disappointing stakeholders including policyholders.

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