Article: Chief actuaries say higher interest rates could affect future surplus adequacy, Tillinghast study shows.

NEW YORK--(BUSINESS WIRE)--April 20, 1995--Future surplus adequacy could be seriously impaired by higher interest rates, according to Tillinghast's 1994 Life Insurance Industry Chief Actuary Survey.

Chief actuaries ranked more than a dozen issues that could affect future surplus adequacy for life insurers. Eighty-four percent rated "higher interest rates" as a top concern. Seventy-three percent cited "tax-law changes," 71% listed "inadequate pricing" and 65% mentioned "new insurance regulations."

"Surplus adequacy is a key measure of financial stability for life insurers. Significantly, almost half (49%) of the study respondents thought higher interest rates ...

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