According to Conning Research and Consulting, the life insurance industry is expected to take some time to recover from the losses experienced as a result of the financial crisis.
The research firm has reported in its semi-annual update of Life & Annuity Forecast & Analysis by Line of Business that the industry had a preliminary statutory net loss of $51 billion in 2008.
The company reports that it does expect the industry to show an operating gain in 2009, but at significantly lower levels than 2003-2007.
"Despite possible negative short term impacts from some of the issues looming over the industry- such as the need to rebuild capital and changing regulations - our longer term view of the life insurance industry is favorable," said Stephan Christiansen, director of research at Conning.
Premium growth is expected through 2011 as people focus on savings and look for more stable investment alternatives, said the company.
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Posted: June 23, 2009
