Year: 2016
Author: Wiener, Klaus, Ketzler, Rolf
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 85 (2016), Iss. 1 : pp. 65–79
Abstract
The historically unprecedented ultra-loose monetary policy stance of the European Central Bank has accelerated the downward trend in capital market rates, thereby resulting in a pronounced low-yield environment not only in Germany, but also in the euro area. However, while monetary policy has steadily become less effective in terms of stimulating the real economy, the resulting risks for the financial system and old-age provision are becoming increasingly more severe. For this reason, it is vital to initiate a gradual normalisation of monetary policy in the euro area now. German insurance companies, particularly life insurers, are facing numerous challenges due to the extreme yield environment with negative rates in most maturity buckets. The industry is not only directly affected in its investment strategy–there are also indirect effects caused by the declining willingness of private households to make financial old-age provisions. In order to adapt to the low interest rate environment, the insurance industry has already implemented various measures over and beyond the provisions policy-makers and supervisory authorities have put in place.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/vjh.85.1.65
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 85 (2016), Iss. 1 : pp. 65–79
Published online: 2016-03
AMS Subject Headings: Duncker & Humblot, Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 15
Keywords: Life insurance old-age provisions monetary policy low interest rate environment G22 E21 E52
Author Details
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