@BNP Paribas.
We live in a fast-changing world, where organisations need to adapt in order to thrive – and this is especially true for insurance companies. Insurers are impacted by economic cycles and fundamentals, but unlike many other sectors, they must also navigate financial market risks and ongoing developments in regulatory frameworks. In the current fluid environment, agility and risk management are key.
Looking back over the past five years from the pandemic to the present day, it has been a bumpy road for insurers. After a decade of ultra-low interest rates, post-pandemic-driven supply-side disruption, followed by the Russia-Ukraine conflict, led to an unprecedented spike in inflation, monetary policy tightening and a surge in interest rates and interest rate volatility.
However, the typical adverse consequences of more restrictive financing conditions did not materialise, with the US particularly showing surprising resilience. The influence of much tighter monetary policy has been offset by stronger-than-anticipated consumption and investment, as well as a significant fiscal expansion.
This period offered a mix of challenges and opportunities for insurers.
