Call for Volunteers for Low Interest Rate Environment Working Party

11/23/2011 —

A new working party is being formed and needs volunteers!

Investment income has played a significant role in the financial results of our industry, and has reduced the cost of insurance products. Current interest rates are at historically low levels. There are challenges posed to our industry from this new environment, both with regard to income statements – reduced investment income if rates stay low, as well as with the strength of balance sheets – market value of fixed income assets will drop if rates return to more normal levels. The proposed working party would explore issues related to this new environment with the hope of uncovering and communicating potential problems before they occur.

Potential methods of research may include

• conducting surveys
• analyzing publicly available financial information of insurance companies, and
• simulation/sensitivity testing.

Working parties bring together a group of interested professionals to focus on a specific research project over the short timeframe. This working party has a hard end of one year. All interested researchers are invited to participate, CAS member or not.

If you are interested in participating in this working party, or if you have any questions, please contact Karen Sonnet at ksonnet@casact.org.