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A.M. BestTV: Insurers Respond to Prolonged Low Interest Rate Environment


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FOR IMMEDIATE RELEASE

OLDWICK - APRIL 11, 2014 10:44 AM (EDT)
This episode of A.M. BestTV looks at how insurers are exploring alternative investments given the prolonged low interest rate environment. At the same time, insurers are bracing for higher interest rates by keeping the duration of their investment portfolios shorter than usual. Jim Gillard, assistant vice president of economic & industry research at A.M. Best Co., said that while insurers have increasingly looked to commercial mortgages and private placement bond offerings for yield, they are still doing so in a conservative way. John Gauthier, president of Allied World Financial Services, discusses how his company has altered its portfolio in anticipation of rising interest rates. George Caffrey, head of Towers Watson's insurance investment advisory group, calls rising interest rates "a bit of a two-edged sword," and anticipates them starting to rise in 2015. Click on http://www.ambest.com/v.asp?v=interest414 to view the episode.

Recent episodes of A.M. BestTV include:


  • Insurers Explore Drones for Claims, Underwriting: A look at how insurers are looking to use drones for quick access during disasters and to explore remote or dangerous locations, as well as establishing coverage for commercial use: http://www.ambest.com/v.asp?v=drones414 .

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