Life insurance premium growth is sluggish in the U.S. and Canada, with the main driver being older consumers' need for annuity and pension products, said Katharine Wolchik, head of global economics at American International Group. AIG expects the housing market to continue its slow recovery and that interest rates will remain low until at least 2015, she said. Accumulative life insurance products and savings products will be affected the most by the interest-rate trend, while protection products, such as term life, "will remain prone to fluctuations in mortality, morbidity, longevity and lapse rates," Wolchik said.

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