Negative rates force decline in yen life products

Japan’s life firms are increasingly focused on foreign-currency products

dollar-yen-japan

European insurers that are grappling to redesign life insurance products to deal with negative sovereign bond yields might look abroad for lessons in what can be done. In Japan, negative interest rates are increasingly pushing annuity buyers towards non-yen-denominated life policies, with insurers passing on currency risk to savers – a trend that regulators have been comfortable with so far.

"Yen savings products are really under a lot of pressure, and many companies are withdrawing their yen

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here