RBA flags low profitability of life insurance industry
Australia’s financial industry faces long-term challenges in managing climate change risks
The Reserve Bank of Australia highlights the low profitability of the country’s life insurance industry in its financial stability review.
In the report, published today (October 4), the RBA warns “profitability in the life insurance industry has declined further and is no longer at a sustainable level”.
Insurers are trying to address the challenge, “but the long-term nature of life insurance contracts means it could take some time to correct”, adds the central bank.
The insurance sector and
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