Low interest rates a cause for concern.
The government's Financial Stability Oversight Council voiced concern recently about the toll continued low interest rates could have on insurance companies.
In its annual report, the FSOC said that the Federal Insurance Office and state insurance regulators "should continue to be vigilant" about interest rate risk. The report identified interest rate risk at nsurance companies as "one of a handful of serious vulnerabilities" about which the FSOC must maintain close scrutiny.
The risk comes at the same time that FSOC regulators are determining which insurers and other nonbanks should be labeled as "systemically significant" and likely subject to further scrutiny.
To learn how to grow annuity sales despite continued low interest rates, see "5 reasons why low interest rates can't stop annuity sales" by Adam Hyers, starting on p. 62.
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|Title Annotation:||LIS: Now & Then|
|Publication:||Life Insurance Selling|
|Date:||Jun 1, 2013|
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