The Hard Market That Wasn't
September 24, 2015
The Federal Reserve’s prolonged historical low interest rate policy combined with its recent decision to maintain current rates due to the global economic uncertainty – primarily in China – continues to adversely impact financial services firms, including insurers. But low interest rates are not the sole factor driving a stalled insurance market. The combined forces of a benign catastrophe loss cycle, excess capital and influx of alternative capital have caused many insurers to lower premium prices in an attempt to maintain market share.