Risk management in a low-yield environment: Consequences of the financial crisis

Abstract

While the climax of the financial crisis is already five years ago, the financial industry, but also governments and economies, are still struggling with its consequences. This paper highlights the lessons learned from the financial crisis from an insurance industry's perspective and elaborates its implication for risk management to cope with the challenges ahead. Particularly, the ongoing ultra-low yield environment presents some challenges for companies, savers and pensioners, investors, and insurers.