7 Reasons Low, Low Interest Rates Could Make Us Sick
November 27, 2019 by Allison Bell
World governments have used too much low-interest-rate medicine to get us over the effects of the 2007-2009 Great Recession, according a team of analysts at a research arm of Swiss Re.
Now, governments may have lowered rates about as far as rates can go, the current low rates don’t seem to be helping the economy much, and low rates may be starting to make us sick, the analysts warn in a new world insurance markets outlook report.
The analysts expect life insurance premium revenue to grow 1% in Europe in 2020, 2.2% in North America, and 3.1% in the world, in spite of the low-rate environment.
But the analysts say that, because of all of that low-rate medicine, life insurers in North America and Europe may soon have to cut or drop the kinds of life insurance and annuity guarantees that help people prepare for retirement.