Insurers Are Seeing Some Benefits from Tough Economic Environment, Study Shows

In conjunction with higher operating costs and increased claim costs, insurers are seeing some benefits from this tough economic environment, according to the Swiss Re Institute.

Researchers reported recently that higher interest rates are translating into higher returns on insurer investments. What’s more, the uptick in premiums due to higher costs also is translate into increased profitability. “The benefit of higher interest rates on insurers’ investment results far outweighs the associated higher cost of capital,” Swiss Re Institute said in its early September report titled, “Raising the bar: Non-life insurance in a higher-risk, higher-return world.”