A.M. BestTV: Insurers Respond to Prolonged Low Interest Rate Environment

OLDWICK, N.J.--()--This episode of A.M. BestTV looks at how insurers are exploring alternative investments given the prolonged low interest rate environment. At the same time, insurers are bracing for higher interest rates by keeping the duration of their investment portfolios shorter than usual. Jim Gillard, assistant vice president of economic & industry research at A.M. Best Co., said that while insurers have increasingly looked to commercial mortgages and private placement bond offerings for yield, they are still doing so in a conservative way. John Gauthier, president of Allied World Financial Services, discusses how his company has altered its portfolio in anticipation of rising interest rates. George Caffrey, head of Towers Watson’s insurance investment advisory group, calls rising interest rates “a bit of a two-edged sword,” and anticipates them rising starting in 2015. Click on http://www.ambest.com/v.asp?v=interest414 to view the episode.

Recent episodes of A.M. BestTV include:

  • Insurers Explore Drones for Claims, Underwriting: A look at how insurers are looking to use drones for quick access during disasters and to explore remote or dangerous locations, as well as establishing coverage for commercial use: http://www.ambest.com/v.asp?v=drones414
  • First Monday: Leading Analysts, Key Topics: A discussion about rising interest in Africa's untapped insurance markets; how insurers might react to Medicare Advantage rate cuts; and sustaining growth in the GCC region: http://www.ambest.com/v.asp?v=firstmonday414
  • Insurers Turn Up the Risk with Jackpot Insurance: Insurers have become increasingly comfortable underwriting contests, punctuated by Berkshire Hathaway’s backing of a NCAA tournament contest with a $1 billion prize: http://www.ambest.com/v.asp?v=jackpot414

A.M. BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry each Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M. BestTV episodes at www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Lee McDonald
Group Vice President, Publication and News Services
(908) 439-2200, ext. 5561
lee.mcdonald@ambest.com

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Contacts

A.M. Best Company
Lee McDonald
Group Vice President, Publication and News Services
(908) 439-2200, ext. 5561
lee.mcdonald@ambest.com