Swiss Re CFO on Negative Impact of Negative Rates

The video discusses the significant impact of negative and low interest rates on long-term investors, including reduced returns and discouraged savings. It highlights the central banks' role in maintaining these rates and their effects on various sectors, including insurance and reinsurance. The discussion also touches on Warren Buffett's investment decisions, suggesting that despite challenges, the reinsurance sector remains attractive with strong returns.

What is one of the main challenges posed by negative and low interest rates for long-term investors?

• Increased inflation

• Higher borrowing costs

• Reduced ability to earn on savings

• Increased market volatility

Why do central banks implement low interest rates according to the video?

• To encourage more savings

• To stabilize currency value

• To discourage savings and stimulate spending

• To increase inflation

What impact do prolonged low interest rates have on reported returns?

• They increase reported returns

• They stabilize reported returns

• They have no impact on reported returns

• They decrease reported returns

What is suggested about Warren Buffett's decision to pull out of reinsurance?

• He wanted to focus on technology investments

• He was dissatisfied with the sector's performance

• He had other investment opportunities

• He predicted a market crash

How is the insurance and reinsurance sector described in the current environment?

• A very attractive sector

• Overvalued and declining

• Less attractive than before

• Unstable and risky