Global Life Insurers during a Low Interest Rate Environment

Ralph S. J. Koijen and Motohiro Yogo

AEA Papers and Proceedings, 2022, vol. 112, 503-08

Abstract: Life insurers' business model has changed with the growth of insurance products with minimum return guarantees that are exposed to market and interest risks. The interest risk exposure of US and European insurers increased in the low-rate environments after the global financial crisis and the European sovereign debt crisis, respectively. The relative fragility of life insurers is highly persistent across the global financial crisis, the European sovereign debt crisis, and the COVID-19 crisis. European insurers with a higher share of liabilities with minimum return guarantees in 2016 had lower stock returns during the COVID-19 crisis.

JEL-codes: G01 G14 G22 G32 H63 I12 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1257/pandp.20221076

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