Insurers taking on more risk for their investment portfolios
Source: Asia Insurance Review | Apr 2024
Inflation, a stock market correction and climate change are seen as the three main risks facing insurers according to new research.
The research from the risk and return management solutions company Ortec Finance has revealed that insurers are expected to take on more risk in 2024 when it comes to their investment portfolios. Currency, equity and liquidity risks for insurers are also expected to rise in 2024.
The study conducted among investment management professionals in life insurers, London markets (re)insurers and investment managers who support insurers found that over the past 12 months, 51% of those surveyed believe the risk profile of the funds they help to manage has increased, compared to 41% who think it has fallen. Over the next 12 months, 59% believe the risk profile will increase further – 14% anticipate a dramatic rise – and just 39% believe it will fall.
The survey included over 100 respondents and was conducted in November 2023. The respondents are located in the UK, the USA, France, Germany, Hong Kong, Italy, Netherlands, Singapore and South Korea. Collectively the responding organisations manage around $5tn. A