In a report released by Fitch Ratings recently, they discussed a changing mix of investments for insurance companies driven by the prolonged low interest rate environment. Insurance Companies are moving towards increased mortgage activity and investments. If insurance companies are able to this without increasing risk, it will improve their earnings which will be positive for policy holders across all lines of coverage. Low interest rates have factored into long term care insurance premium rate increases (though they are a minor reason) and deteriorating performance of cash-value life insurance policies.
A key to monitoring your insurance portfolio is to measure the financial strength ratings for your insurance companies. You can learn more about the various insurance company financial strength rating services on tonysteuer.com. The Federal Insurance Office’s 2018 report provides a detailed description of the U.S. Insurance market including industry statistics and the regulatory environment. … Read more