Thus, if interest rates were to suddenly climb sharply higher, that might be a rational reason for customers to lapse their policies. In a worst-case scenario, that might spark an upsurge in policy lapses. Surrender values that move in line with the market value of insurers’ assets might be one way of eliminating this risk caused by regulation.
In the past, the ECB was repeatedly the butt of criticism, ranging from the zero interest rate policy to the purchase of government bonds of indebted countries. Do you ever have any doubts about your own role? Well, I think that if you never questioned your own role you would not be the right person for the job.