The International Monetary Fund (IMF) revised its outlook for world economic growth in 1998, first from 3 to 2½ per cent (in August 1998), and then to 2 per cent (in October 1998). For 1999, the projection was similarly reduced from 3¾ per cent to 2¼ per cent at this stage. 2.
By way of comparison: the average current yield on public sector bonds with an original maturity of more than four years was recently around 1.3%. Insurers need to respond. Their capital buffers are shrinking. The coverage ratio, which is the ratio of regulatory capital to regulatory capital requirements, dropped from around 186% in 2009 to just under 169% at the end of 2012.