Changes in the Life Insurance Industry
I know I just sent you a newsletter a few days ago. I apologize if I’m sending you another one so soon but I believe this is too important not to share. In the last two years, the life insurance industry has been completely turned on its head. With record low interest rates and changes in international accounting standards, insurance companies are being forced to change the way they do business. Let me give you some background. Ever since the financial crisis of 2008, the government has been lowering interest rates to help keep the economy going. While lower interest rates are good for borrowers, it can be devastating to savers and investors who need higher interest rates to earn their income. This has been the case for financial companies like insurance companies. Insurance companies earn their income from several sources. Premiums and investment return from their reserves. Premiums alone are not sufficient to provide earnings for the insurance companies, premiums are a
