Insurance Asset Management: Getting Asset Allocation Right

Investment Strategies for Insurers

In recent years, insurance company CIOs have had to navigate low interest rates and a slew of new industry regulations. However, delivering adequate returns on investment has remained of paramount importance. Getting asset allocation decisions right has never been more critical.

In the list below, our Content Team has selected some of the best white papers on investment management for insurers, covering topics from regulatory solutions to insurance asset management strategies, studies and surveys.

IFRS and Solvency II: A chess game in insurers' investment strategy (HSBC GAM, 2018)

For compliance reasons, this paper is only accessible in certain geographies

This paper by HSBC GAM explores the key points of each standard (IFRS 9, IFRS 17, and Solvency II) and the links between them, before providing a high-level analysis of the various accounting options available to insurers.

Private debt assets for cashflow-driven investing strategies (Aviva Investors, 2018)

For compliance reasons, this paper is only accessible in the UK & Europe

This paper by Aviva Investors describes why introducing private debt assets in Cashflow Driven Investments can be beneficial.

Making the Case for CLOs for U.S. Insurers (PineBridge, 2018)

For compliance reasons, this paper is only accessible in the US

This paper explores how collateralized loan obligations (CLOs) work and the potential benefits they offer insurance investors.

North American Insurance Survey (Aberdeen Standard, Oct 2018)

For compliance reasons, this paper is only accessible in North America

This survey by Aberdeen Standard identifies several challenges for the North American insurance industry, including a sustained period of low interest rates and the onset of rapid technological change.

Institutional Investor Study 2018: An Insurance Focus (Schroders)

This 19-page report summaries a Schroders survey of 157 insurance investors, representing around USD 10 trillion AUM.

A Paradigm Shift in Insurance Asset Management (Spence Johnson, 2017)

Insurers’ investment decisions are driven by the outcomes that they seek, and problems they need to solve. Each insurer will have their own different set of outcomes, making each one unique. Understanding this ‘mindset’ is crucial for asset managers.

Outlook for Insurance Investors: New World Order (KKR, Apr 2018)

The multi-year decline in interest rates since the Global Financial Crisis has had a profound effect on the insurance business. Given this backdrop, getting asset allocation right has never been more important.

ETFs in Insurance General Accounts (S&P Dow Jones Indices, May 2018)

The authors of this report combine First Bridge classification information with statutory filing data from S&P Global Market Intelligence to gain insight into how insurance companies use ETFs.

Letting Insurance Asset Data Speak for Itself – Asset Allocations of Life Insurers in Asia (SOA, 2018)

This paper seeks to explain high-level trends in asset allocation of major life insurers across eight Asian markets (China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand) over the last four years to 2015.

Catastrophe Bonds: Investing With Impact (Man AHL, Oct 2018)

Cat bonds are emerging as a socially responsible investment. For the insured risk, they provide an element of risk transfer to investors, while a new breed of cat bonds, known as pandemic bonds, are helping to prevent deadly diseases from spreading.

CAT Bonds and ILS: Three Manager Selection Pitfalls (bfinance, 2018)

During the first half of 2018, multiple investment consultants urged investors towards CAT bonds and ILS. Yet this bfinance research emphasises that asset owners should handle the choice of ILS strategy and manager selection with caution.

Got it Covered? Insurance in a Changing Climate (AOD Project, 2018)

This report assesses the insurance sector response to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and features an index of the world’s 80 largest insurers rated on their approach to climate-related risks and opportunities.