UK life insurance being buoyed by investment returns

Investment returns and pension risk transfer market keeping sector largely resilient despite rate cuts and trade wars.

Uk Life Insurance @Pixabay.
What effect will interest rate changes have on the healthy UK life insurance sector?

The UK life insurance sector is seeing its financial health being buoyed by solid investment returns. This is according to AM Best’s latest industry report on the UK’s life insurance sector, which states that investment returns are being driven by higher interest rates.

The life insurance market invests in long-term projects. It thus can take on volatility, duration, and illiquidity risk, which due to being risks, not all investors are happy to or can be exposed to.

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