Following a volatile end to 2018, we anticipated a return to a more "normal" market environment. Although the majority of asset classes have posted strong returns for 2019, a continued march lower in global interest rates forced insurers to stretch further for yield.
Looking forward to 2020, we must again consider the implications for insurance companies of a prolonged "lower for longer" environment and stretched valuations. Furthermore, insurers have to contend with non-investment related pressures, such as underwriting, M&A and increased technology disruption. Our insurance clients continue to express concern that "regulatory intrusion" is proving challenging to investment activities.
With these challenges in mind, our global insurance team has identified 6 investment ideas that we believe will aid in the successful management of an insurer's assets in 2020 and beyond.
We would be happy to discuss these ideas with you in more detail.
By failing to prepare, you are preparing to fail.
Diversify corporate credit risk.
Be selective in private debt.
Alternatives -- opportunities remain.
Update on capital-efficient strategies.
Position for climate change.