Description: This article analyzes the events leading to low interest rates and recommends careful asset/liability management and risk analysis to address future challenges with interest rates.

Description: The author notes that “many considerations enter into the determination of investment strategy. Important among these considerations is the maximization of investment income on an after-tax basis rather than on a before-tax basis.” The article then discusses how starting in the early 1960’s insurers, using a marginal tax rate approach, invested heavily in tax exempt bonds. The author, expressing his belief that a major depression is likely to occur in the next 10 years, recommends insurance companies divest of their holding in tax exempt instruments, based on the macroeconomic analysis he presents.

Description: Consensus of viewpoints from a group discussion on economic forecasting at the March meeting of the Canadian Institute of Actuaries.