Description: This is an article that discusses the retreat of savings banks from mutuality. As we ponder the future of mutual life insurance, we should be aware of the change sweeping through the mutual savings bank industry.

Description: Article Society Seminars by Adams in The Actuary, February 1979, Volume 13, Number 2

Description: Businesses across the board have been drastically impacted by the effects of COVID-19 over the course of 2020, and insurance was not immune. Perhaps most relevant to this industry’s current capital and liquidity concern is the prevailing low interest rate environment. This has been a global trend in the last decade, and treasury rates in much of the developed world are at or near zero. Reduced investment returns limit an insurer’s ability to achieve their desired return on equity, eliminating previously profitable strategies that depended on the leverage of life and annuity balance sheets. Focus and activity have instead shifted to other methods to counteract the low interest rate markets and accompanying capital strain. Examples include increased mergers and acquisitions (M&A) activity within the insurance industry and an increasing focus by private equity firms in the insurance market for asset-intensive products, both of which reflect the goal of increasing yield rates on capital.

Description: This article focuses on the motivation and trends, rather than mechanics, in Life Insurance Securitization.