Insurers challenges for the next two years

Insurers challenges for the next two years

Eurozone’s debt crisis, the economic downturn combined with low interest rate and changes to the supervisory process, are the main challenges facing the insurance industry over the next two years as outlined in the recent report of EIOPA concerning the financial stability of the insurance industry in 2011.

The debt crisis and the absence of a constant and effective political response are according to EIOPA the main source of concern that may destabilize the financial stability of both insurance companies and public funds in the coming months.

These factors affect consumer confidence and reflect the decrease in demand for life products, while the increased natural disasters that occurred both during 2010 and in 2011, affected significantly the liquidity of both the insurance and reinsurance sector.

Click here for the Greek article.

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