Life changing: The outlook for life insurance in Europe combines Linklaters’ legal and market insight with the candid views of 100 senior executives from Europe’s largest life insurers, representing around one-fifth of the market. Amidst a “perfect storm” of low yields, strong competition and increasing capital pressures, our study reveals that European life insurers are actively taking steps to preserve margins such as cutting costs, reviewing product design and adopting more aggressively yield-driven investment strategies.
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Linklaters – The outlook for life insurance in Europe
Published by Uma Rajagopal
Posted on October 22, 2013
1 min readKey Takeaways
- European life insurers face a “perfect storm” of low yields, intense competition and capital pressures.
- To protect margins, insurers are cutting costs, redesigning products and pursuing yield‑driven investment strategies.
- Survey of 100 senior executives represents nearly one‑fifth of the European life insurance market.
- If low yields persist, firms forecast more radical moves: consolidation, capital‑raising, expansion into emerging markets, run‑offs or insolvencies.
References
Frequently Asked Questions
What is the main challenge facing European life insurers?
European life insurers are grappling with a “perfect storm” of persistent low yields, strong competition and rising capital pressures.
How large was the survey behind the study?
The study surveyed 100 senior executives from Europe’s largest life insurers, representing just under one‑fifth of the market.
What strategies are insurers adopting to protect margins?
Insurers are cutting costs, reviewing product design and adopting more aggressive yield‑driven investment strategies.
What radical actions might insurers take if low yields persist?
They may pursue costlier measures such as consolidation, capital‑raising, expansion into emerging markets, run‑offs or even insolvencies.
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