Friday Finance

After a financial crash unprecedented since the 1930s, how have the insurance industry, institutional investors and pension funds coped with the crisis? What are the consequences and risks for these players of the unprecedented fall in interest rates to near-zero levels? More specifically, should the insurance sector expect to suffer in terms of new money inflows? Do low bond risk premiums now represent a specific asset-liability management risk for these players? Finally, the introduction of new regulations, and in particular the application of Solvency 2 rules, is creating new constraints in terms of equity capital for these players. Have they already decided to modify the composition of their balance sheets? What impact could this have on the supply and demand for different asset classes in the short and medium term? What are the challenges facing the industry as a whole, particularly in Europe? Michel Piermay (ENSAE 1976), PhD in monetary economics, graduate of the Centre d'Études Actuarielles, associate member of the Institut des Actuaires and founding chairman of FIXAGE, will be speaking on these issues. Michel Piermay founded FIXAGE in 1992, after spending seven years as Investment Director at Cardif and Cortal, then CFO of La Mondiale before becoming its CEO. He is a member of the S.F.A.F. and the A.F.G.A.P., and a speaker at conferences and seminars. He is also the author of several books published by Economica.