Life Insurance Calming Down Since Surge
In America, life insurance companies which rely on investment income to make a beneficial impact on their policies are under pressure due to the economic downturn. Several have been damaged by heavy losses on their holdings of commercial properties, mortgage-backed policies and corporate debt.
However, despite all the hysteria, Hunter a former insurance regulator said the current situation is not as bad as everyone thinks: “I’d say most companies are in OK shape” because of the capital they built up before the financial markets went into a tailspin, he said.