The 2022 report by the Financial Market Authority (FMA) on the insurance industry, which was published yesterday, shows that the surge in inflation, extremely volatile capital markets, the slowdown in the economy, fears of recession and the abrupt turnaround in interest rates are weighing on the industry.
This year alone, between January 1st and July 30th, the assets under management of insurance companies shrank by nine percent to around 125 billion euros, mainly due to massive losses on the capital markets. Because the prices of many shares have fallen massively, the low-interest bond portfolio lost significantly in value in view of rising interest rates.
In the same period, premium income increased by around seven percent. According to the FMA, however, the industry is well capitalized.
Source: Nachrichten
