Life Insurance CFOs’ primary business concern is the current low interest rate environment, according to Towers Watson’s recent survey. However, according to the survey, they are more optimistic about improvements in their financial results.
Almost half (45%) of respondents of “Life Insurance CFO Survey: Low Interest Rate Environment,” emphasized that a prolonged low interest rate environment is the greatest threat to their business. And, they aren’t expecting the environment to get any better anytime soon. More than two-thirds (68%) said they expect a three- to five-year period of low interest rates, followed by a gradual increase. Eighty-seven percent of all respondents believe there is a 50% or greater likelihood of a major disruption to the economy in the next 12 to 18 months, with 27% saying there is a 75% likelihood and seven percent saying the likelihood of a major disruption is almost certain.
