Insurers Win As Fed Hikes Interest Rates Again

News Item: The Federal Reserve hikes interest rates by a quarter-point and signals two additional hikes this year and three in 2019.
Winner: The insurance industry. After many years of a near-zero Federal Funds Rate, the lid is off and insurers will see several benefits, said Frank O’Connor, vice president of research at the Insured Retirement Institute. "First and foremost, rising rates are going to mean higher crediting rates on traditional fixed annuities, CD-type fixed annuities and multi-year guaranteed annuities, as well as increase the payouts on immediate annuities," he said.