Hybrid products: a response to low interest rates in Life Insurance

Starting from the financial crisis, interest rates decreased a lot, and they strongly impacted the entire financial sector. In this thesis we focus the attention on the Life Insurance sector, analysing the impact of this new environment, but also the response of this area. In fact, this phenomenon has negatively impacted the profitability of the in-force traditional products. So, in order to compensate for a possible loss, life insurers started to enhance modern products and also new ones, like the hybrid policy, which is a combination between the traditional and the investment products. The aim of this product is to try to still provide a guaranteed sum to the client, but compensating its possible loss through another one which gives for sure a profit.