Moody's Investors Service has upgraded its outlook on the U.S. life insurance industry to stable from negative, LifeHealthPro reported. The credit rating and research service, which has maintained a negative outlook on the industry since September 2012, said in a report Wednesday that the outlook change is driven by its expectation that interest rates will continue their gradual rise in 2014. According to Moody's, the U.S. economy will continue to show greater stability over the next two years, expanding 2 to 3 percent in 2014 and 2.5 to 3.5 percent in 2015, which is credited to the continued improvement of the housing market and unemployment rate. With this, Moody's sees a rise in the demand for life insurance and annuity products.