Low rates and Solvency II raise ‘profound challenges’ for insurers – French governor

The insurance industry faces two profound challenges, the governor of the Banque de France said. Firms face persistent low interest rates and regulatory changes emerging since Solvency II came into force, François Villeroy de Galhau told an audience in Paris on October 14.

While French insurance firms had cut returns on their products in the past year by an average of 25 basis points, this was "still insufficient" compared with the fall in returns on bonds, de Galhau said. Yields on French