Gauging the Impact of a Low Interest Rate Environment on German Life Insurers
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Gauging the Impact of a Low Interest Rate Environment on German Life Insurers
Applied Economics Quarterly, Vol. 58 (2012), Iss. 4 : pp. 279–298
6 Citations (CrossRef)
Additional Information
Article Details
Pricing
Author Details
Deutsche Bundesbank, Wilhelm-Epstein-Straße 14, 60431 Frankfurt.
Deutsche Bundesbank, Wilhelm-Epstein-Straße 14, 60431 Frankfurt.
Cited By
-
Macroprudential Solvency Stress Testing of the Insurance Sector
Jobst, Andreas A. | Sugimoto, Nobuyasu | Broszeit, TimoIMF Working Papers, Vol. 2014 (2014), Iss. 133 P.1
https://doi.org/10.5089/9781484346365.001 [Citations: 3] -
An Empirical Study on the Effects of Monetary Policy on Profit, Solvency, and Stock Price of Life Insurers
Financial Stability Studies, Vol. 19 (2018), Iss. 2 P.79
https://doi.org/10.26588/kdic.2018.19.2.003 [Citations: 0] -
How Do Life Insurers Respond to a Prolonged Low Interest Rate Environment? A Literature Review
Suwanmalai, Wilaiporn | Zaby, SimonRisks, Vol. 10 (2022), Iss. 8 P.155
https://doi.org/10.3390/risks10080155 [Citations: 2] -
통화정책이 생명보험회사의 수익성, 재무건전성 및 주가에 미치는 영향에 대한 실증 연구(An Empirical Study on the Effects of Monetary Policy on Profit, Solvency, and Stock Price of Life Insurers)
Lee, Sang Jin
SSRN Electronic Journal , Vol. (2018), Iss.
https://doi.org/10.2139/ssrn.3306506 [Citations: 0] -
Investment guarantees in financial products: an analysis of consumer preferences
Luca, Daliana | Schmeiser, Hato | Schreiber, FlorianThe Geneva Papers on Risk and Insurance - Issues and Practice, Vol. 48 (2023), Iss. 4 P.906
https://doi.org/10.1057/s41288-022-00268-4 [Citations: 4] -
FINANCIAL INTERMEDIARIES’ ASSET–LIABILITY DEPENDENCY AND LOW-INTEREST-RATE ENVIRONMENT: EVIDENCE FROM EU LIFE INSURERS
CURCIO, DOMENICO | BORRI, NICOLA | CERRONE, ROSARIA | COCOZZA, ROSAJournal of Financial Management, Markets and Institutions, Vol. 07 (2019), Iss. 01 P.1940003
https://doi.org/10.1142/S2282717X19400036 [Citations: 0]
Abstract
A low interest rate environment can pose a key risk to the life insurance sector. A deteriorating return on investment holdings jeopardizes the guaranteed return on life insurance contracts. In this paper, we examine the effect of low interest rates on German life insurers by applying various adverse scenarios to a simple model of life insurers' balance sheets. A low return on investment can lead to a depletion of the bonus and rebate provisions (BRPs). As a result, life insurers' resilience may deteriorate. By way of this analysis, we can model approximately when the bonus and rebate provisions will be depleted.
JEL Classification: G14, G21, G28