Publication Date: 16th November 2017
Life insurers assume risks that are more effectively borne by institutions than by individuals. Longevity and mortality risks provide diversification benefits when grouped together and they are much more predictable when pooled by insurers across large numbers. As institutional investors, life insurers play a key role in funding the real economy and the public sector. And like any other business, life insurance provides jobs for employees. This Issue Brief summarises life insurance activities for a number of advanced economies and traces how the current low interest rate environment could place the socio-economic roles of life insurers at risk.