Investment solutions for insurers in a post-COVID-19 world
The Covid-19 crisis has without doubt been a catalyst for many insurers to revisit their investment strategy. In particular, the pandemic has provided them with the opportunity to reassess not only their strategic asset allocation but to also take time to review their overall approach to investment management and whether their portfolios are sufficiently resilient to withstand future shocks.
By focusing on long-term themes such as private markets credit sector opportunities and responsible investing our view is that insurers will be more effective in generating sustainable and resilient sources of return whist managing their risks.
At the same time, insurers must seek to align with constantly evolving regulatory regimes that will inevitably mean more scrutiny of their ability to withstand future shocks. Liquidity, climate risk exposure and capital adequacy are just a few of the ongoing demands for insurers to consider when reassessing their investment strategy.
Whatever 2021 brings, there will be new risks to manage and opportunities to capture.
Find out how we see the world in this new normal and beyond, as we accelerate out of the crisis.
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by Colin Tipping, Global Head of Insurance Solutions