Insurer investment management insights #2

Insurer Investment Management Insights – Issue 2

In this second issue, in the context of the persistence of the low yield environment and the current regulatory developments, our experts shine a light on the implications for the insurance industry.

Last quarter was dominated by two main events with long term implications for the insurance industry: first, on the economic side, the FED confirmed its dovish stance consolidating the persistence of the low yield environment and second, on the regulatory side, EIOPA issued its opinion on the Solvency II review indicating the lines of the review of the framework. 

In this paper, we detail the implications of those two events on the insurance industry. We also analyse the various asset classes in the context of existing portfolio allocations. The publication is divided into three sections:

  • Kristina Hooper, Chief Global Market Strategist, covers the implications of disruption, both monetary and geopolitical and the debt overhang
  • Elizabeth Gillam, Head of EU Government Relations and Public Policy, assesses the crucial topics which actually impact insurers : European Insurance and Occupational Pensions Authority (EIOPA) publication detailing its opinion on the Solvency II Review last October, sustainable finance and climate risk, a focus by country in Europe (France, UK & Germany) and the 5 top trends raised by International Association of Insurance Supervisors (IAIS)
  •  Alexandre Mincier and Charles Moussier, Global and EMEA Head of Insurance Investment Solutions, focuses on how clients can optimise their insurance balance sheet within this framework.

Read the paper

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.