(Reuters) – Half of the chief financial officers at property insurance companies say they are near their limit for investment risk, yet roughly a third expect to become more aggressive in the next year, according to a study released on Monday that underlines the challenges that low interest rates pose to insurers.
The Towers Watson survey of 32 CFOs from North American property and casualty companies broadly mirrors a similar survey the consultancy conducted of life insurers this summer, where 40 percent said they had already breached the risk limits they had set.
Interest rates have become a preoccupation for the insurance industry, which relies on steady long-term returns to fund its obligations. With rates stuck at historic lows and little prospect of change in the next few years, insurers are pushing their limits to find sufficient returns.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
