Insurance Industry Faces Growing Risks

Businessn.a. ♦ Published: January 22, 2014; 22:41 ♦ (Vindobona)

According to the U.S. rating agency Fitch, insurers in Europe have to accept riskier investments. Ratings may deteriorate, Fitch warned.

Insurance Industry Faces Growing Risks / Picture: ©

In the next few years, the main challenge of insurance companies will be to generate stable yields despite the low interest rates. As a result, insurers will have to switch gradually to riskier investments, Fitch forecasted.

Since the outbreak of the financial crisis in 2008/09, investments in equities and real estate have fallen moderately. In return, insurers acquired more…