Extreme market volatility continues to make life hard for insurers. The eurozone rumbles on without any clear sign of resolution and the threats of a Greek default and wider contagion still loom ominously. As a result, insurers have been moving into risk minimisation mode, hunkering down, hoarding cash and not looking to add risk. At the same time, low interest rates mean insurers are struggling to meet the cost of long-term guarantees.
These dynamics are having implications for insurers’ asset