STOP OFFERING LONG-TERM GUARANTEES, LIFE ASSURERS TOLD

Life assurers cannot afford to continue to offer guarantees on products that will run for decades, according to Ann Sommer, CEO of Swedish assurer Länsförsäkringa. She said at the Nordic Risk & Insurance Summit (Noris) this week that life assurers should focus on the fundamental aspects of the cover – compensation for death. She said that life companies offering savings guarantees would go into a slow but terminal decline. Life assurers needed to come up with innovative forms of cover, or to begin offering products that do not give savings guarantees.