What are the chances insurance companies will lower premiums once interest rates return to normal? My guess is nil.
It isn’t a direct correlation like you might think. If you build your long-term reserves based on a projected 5% average return for safe investments (U.S. Treasuries, for example) and the rate declines to 2% for a few years, then you can never really go back and make up the “lost time” when your reserves were under-performing.