Rising Interest Rates: Challenges & Opportunities for Insurers

The insurance industry, a cornerstone of financial stability, is facing a rapidly shifting landscape as global interest rates climb. In the US, the Federal Reserve’s sustained monetary tightening has pushed borrowing costs to multi-decade highs. Meanwhile, in the UK, long-term borrowing costs have surged in January albeit they retreated somewhat mid-month. These dynamics present both opportunities for investment returns and challenges in managing liabilities and customer expectations.