2019 Financial Stability Report

markets. Lower interest rates reduce their

premium collection and ultimately their

profitability; however, investment income is

profitability. Repricing is another major

not the main source of revenue for insurers

risk facing the insurance sector, for insurers

but rather premium income.

the price of reinsurance is likely to increase

as disasters become more frequent and

Challenges for the sector in the medium

larger. On the consumer side increasing

term include transitioning into the new IFRS

prices are likely to force many out of the

17 standard which will have some impact on

market which could lower insurance

the sector. This transitional arrangement

penetration and coverage.

will impact the way insurers record

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