Although the industry sectors share challenges, including the continuing weak global recovery, Moody's says life insurers will be the most impacted by a slow growth environment, given that their products are often discretionary purchases. Low interest rates will also weigh on life insurers' margins.
Moody's Investors Service released two new global outlooks "Global Life Insurance Outlook - 2013," and "Global P&C Insurance Outlook – 2013,” in which they describe how ongoing low interest rates and volatile equity markets will also accelerate life insurers' retreat from guaranteed investment products, reducing sales in the short-term. But it was added that this retreat is expected to result in improvements to the overall risk profile of the life industry in the years to come.
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