The present low interest rate environment in a number of countries has a profound influence on life assurance. Although it is not clear yet whether we will see a repetition of a Japanese scenario with a prolonged continuation of low interest rates, there is no doubt that the present situation already has an impact on the existing book of life policies. Furthermore, the question arises whether it will be possible to continue providing long term guarantees in the future. The planned introduction of a risk based solvency regime (such as Solvency II) has a direct impact on this question.

The first meeting of Karel’s Club will look at the future of life assurance addressing a number of questions, such as:

  • What is the likely impact of the introduction of a risk based solvency regime on the existing book of life policies?
  • Is the provision of long term guarantees still an interesting proposition if the risks attached to these guarantees must be properly reflected in the solvency position of the undertaking? 
  • Will the insurance industry move out of long term guarantee business in order to concentrate on asset management?
  • Will the life assurance industry become irrelevant in the future?
  • What alternatives are available in terms of product innovation in the life business?