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The Insurance Asset Management Industry: Issues and Opportunities

  • ,  Chief Executive |
  • 16 Jul 2020
  • Updated 12 Nov 2021

Top Recent Papers on Insurance Asset Management

This post represents the latest updates on issues pertaining to the insurance asset management industry as of Q3 2020. S&P Dow Jones Indices starts off with a rousing account of the utility of ETFs within insurance general accounts. Other papers discuss potential core strategic allocations for insurance investors, including real estate assets and infrastructure investments via the municipal bond market.

Other hot topics for the insurance sector include the impact of climate change upon property and casualty insurance companies, as well as properly accounting for mortality and longevity risk within actuarial assumptions. For insight into these issues and others affecting the insurance asset management industry, look first to the papers listed below.

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ETFs in Insurance General Accounts (S&P Dow Jones Indices, 2020)

Insurance companies have doubled their usage of ETFs in general accounts just since 2015. This report expounds on a 2015 paper on the same subject, discussing specific reasons for the increase in their utilisation.

ETF Transactions by U.S. Insurers in Q1 2020 (S&P Dow Jones Indices, Jul 2020)

S&P Dow Jones Indices updates its work on the annual use of ETF usage by U.S. insurance companies in order to take into account changes predicated by the first quarter's volatility in markets.

Core Real Estate for U.S. Insurers (MetLife IM, Jun 2019)

MetLife IM looks at the benefits of a core real estate equity position for insurance investors, including diversification, tax benefits, and risk-adjusted returns.

The unique climate change risks facing insurers (Robeco, 2020)

In this paper, Robeco explains why climate change is a threat to both the liabilities and the assets held by insurers. No single industry is more exposed to climate change risks than the insurance industry.

Climate Change and the Opportunity in P&C insurers (PGIM Fixed Income, Jun 2020)

How will property and casualty insurers be affected by climate change? While the exposure to the industry is significant, PGIM Fixed Income explains why the widening protection gap is also an indicator of health within this industry.

Core Infrastructure Investments for Insurers (S&P Dow Jones Indices, May 2020)

S&P Dow Jones Indices interviews a portfolio manager from Western Asset Management on the utility value of infrastructure investments (especially via the municipal bond market) for insurance investors.

A New Milestone for Exchange Traded Funds (State Street, 2020)

Specialists from State Street discuss semi-transparent ETFs, and how they may pave the way for more innovative ideas from active managers.

The Impact of COVID-19 on Insurers (VoxEU, 2020)

This academic article looks at COVID-19's more grim impacts upon the insurance industry, such as increases in morbidity and mortality, as well as adjustments that insurers may need to make to their overall risk appetite.

Potential Implications of COVID-19 for the Insurance Sector (Deloitte, 2020)

This Deloitte paper examines some of the key issues facing insurers during the ​COVID-19 epidemic, including business continuity planning, client service, and insight into the broader financial outlook.

COVID-19: Scenario analysis for UK and U.S. insurers (Willis Towers Watson, 2020)

How will the pandemic affect property and casualty insurers in the United States and the United Kingdom? This report attempts to provide some clarity on the potential economic scenarios and outcomes that may result.

Webinar: The impact of Covid-19 on future higher age mortality

This webinar looks at COVID-19's effects on how longevity risk and mortality itself is modelled within the insurance industry.

Longevity Risk and Capital Markets (Pensions Institute, 2020)

The concept of longevity risk has increasingly become important to the insurance sector. Improvements in mortality statistics are occurring across the world and are exerting more pressure on insurers and governmental bodies.

Negative Interest Rates and the Insurance Industry (SOA, 2020)

This report is a coordinated effort on behalf of several actuarial societies and delves into the policy of negative interest rates, as well as the risks that this policy could pose for the insurance industry.

Why Insurers Fail: Lessons from Reliance (PACICC, 2020)

Reliance Insurance Company's 2001 insolvency proceedings had important implications for the insurance industry.

Pensions De-risking Report: Buy-ins, buy-outs and longevity swaps (LCP, 2020)

Lane Clark & Peacock present their 13th report on the longevity swap, buyin and buyout market in the United Kingdom. This report is primarily geared towards DB pension trustees looking to transfer risk to insurance companies.