Capital efficient products in the European life insurance market

This paper focuses on the problems and possible solutions of recent developments in the European life insurance market arising from a set of different factors stemming from the current economic and regulatory environment of European life insurers. The majority of European life insurers have responded to a challenging situation with a gradual adaptation of their product portfolio by moving away from traditional life insurance products in favour of both capital efficient products on the one hand and profitability on the other hand for their future new business strategy.