Insurance investment has become increasingly challenging in the decade since the global financial crisis.
A combination of factors including extraordinary monetary easing, macroeconomic and political uncertainty, and regulatory and accounting changes has resulted in increasingly diverse balance sheets in need of more intensive management.
Innovation, not just for insurers but also for their partners, is key to overcoming these challenges.
New assets and investment strategies are already beginning to support insurers to cut through this complexity and increase the flexibility of their investment portfolios.
Going forward, collaboration and innovative partnerships between insurers, asset managers and others offer an opportunity to deliver sustainable solutions for the long term.
Reducing today’s interwoven complexities to simple management actions and decisions brings us all closer to the industry’s holy grail: a sustainable business with stable, visible returns into the far distance.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.