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By Mike Heuer


Recent bad economic conditions means many life insurance companies are looking to boost their capital reserves, and that means whole life insurance rates will go up while term life insurance rates likely will remain level, according to a recent study by Swiss Re, one of the world’s largest reinsurance companies.

Swiss Re researchers anticipate term life insurance premiums will remain level and possibly decline slightly as a high unemployment rate depresses the sales of traditional investment vehicles on which whole life insurance companies often are dependent to generate profit.

“As the economy recovers, we expect both higher life premiums and better investment results as asset prices are expected to improve,” said Daniel Staib, one of the authors of the study on global life insurance markets. “This will not only have a positive impact on profitability, but also on shareholder capital and the ability to raise capital. In the medium and long-term, the outlook for life insurance remains positive.”

While the current global insurance market has been less than favorable for life insurers, Swiss Re researchers say emerging economies have stunted the ill effects of the recent global economic collapse that battered life insurance companies in established industrialized nations in 2009. Recent sales of life insurance policies in emerging economies offset the global decline, posting an average gain of nearly 15 percent in emerging markets, according to the Swiss Re study. When adjusted for inflation, global insurance premiums declined by about 2 percent during the height of the economic crisis in 2009.

With the national economy leveling off in recent years as well as the global markets, many life insurance companies have begun reducing rates once again in an increasingly competitive market. That means getting a great deal on term life insurance is easier than ever, especially with our free, secure term life insurance quote tool. Just a few moments providing only the information needed to get accurate term life insurance quotes is all it takes to get a great deal on term life insurance.