What problems for life insurers in the euro zone?

We see the following problems for euro-zone life insurers from a macro-financial viewpoint : Interest rates may remain low for a long time in the euro zone; moreover, in a long-term perspective, it was logical for life insur ers to invest in bonds in a period of disinflation and falling interest rates, but not in a period of stable, low interest rates or of a lasting rise in long-term interest rates; It would be logical for insurers to switch from bonds to equities given the relative returns on the two asset classes; this is made difficult: By the capital risk linked to the holding of equities In the short term by the global cyclical risk; Life insurance is caught in vicious circles : The fall in interest rates increases the present value of the liabilities and reduces the capital, hence the temptation to sell assets that consume capital (equities, corporate bonds), but which are those that provide return on the assets; The holding of risky assets is procyclical: a slowdown in growth leads to falling share prices and widening credit spreads, and gives an incentive to sell risky assets to reduce capital consumption when they are cheap; The life insurance "of the future" should diversify into High Yield, private equity, real estate, infrastructure, etc. (illiquid, unlisted assets). If insurers’ demand for these assets increased, the supply of these assets would also increase as a reaction.