How investment returns affect insurance premiums

In an ideal world, the size of a customer's insurance premium would always correspond directly to their individual risk profile. However, just as customers are affected by political and economic developments beyond their control, so too are insurers, and such factors can have an impact on the way insurance premiums are calculated.

One of the most important factors is the level of returns that insurers get from their investments.

This article aims to help brokers educate customers on the factors that can influence the size of premiums.