Impact of Megatrends on Client Strategies and Business Environment
Clients face interconnected megatrends of trade, technology, weather, and workforce, which are intensifying and creating complex operating environments.
Recent developments include US tax legislation, global tariff shifts, severe weather events, and AI workforce impacts, reinforcing the need for adaptive risk management strategies.
Impact of Lower Interest Rates on Business Strategy
Management discussed how a lower interest rate environment affects premium calculations, with premiums likely decreasing as rates fall.
Despite lower premiums, a lower interest rate could lead to increased market issuance as issuers take advantage of cheap borrowing costs.
The secondary market is expected to remain resilient, with spreads potentially widening, which could offset some of the impact of lower interest rates on premium income.
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