Christopher Tschida
Head of US Insurance
Fluctuating interest rates, volatile risk premiums and rising inflation are some of the issues driving increased complexity for insurance investment portfolios. That’s why many insurers are looking for better ways to optimise their investments, increase income, grow surplus and properly align risk.
We believe that with the right expertise and structure, efficient operations, effective execution and lower costs1, an insurance company’s investment programme can grow enterprise value and provide a competitive advantage.
The insurance industry is taking action on environmental, social and governance (ESG) considerations through ventures such as the UN Environment Programme’s work on Principles for Sustainable Insurance. Internal and external stakeholders are increasing their scrutiny of ESG issues.
Whether you’re focused on risk management, regulatory compliance, or identifying potential investment opportunities, you will need to consider sustainability issues. For example, climate change poses significant risk on asset owners of all sizes around the world. We provide a number of tools that can help you understanding the potential impacts, benchmark against peers and implement changes.
When you’re seeking greater diversification and higher returns, private market asset classes, such as infrastructure, real-estate and private debt, could play a greater role in your portfolio. Private debt is increasingly becoming a core allocation for insurers, supported by asset classes such as middle market lending, structured credit and speciality finance.
Understanding these asset classes and how they can meet your needs requires specialised knowledge, manager selection capabilities, access and scale to be effective. For smaller insurers, being able to pool assets with other institutional investors through our investment solutions could open new investment markets at an affordable cost. Our specialists around the globe source and implement alternative investment solutions for our clients.
The issue:
A global marine insurer needed to adjust to a new operating model. The process highlighted the company’s limited internal resources and inability to execute and nimbly adapt its investment strategy.
The in-house team wanted to retain control of manager selection but also explore new investment opportunities that capture yield, including moving into private markets.
The solution:
We began working with the insurer in a consultant capacity before progressing to an implemented consulting and discretionary delegated asset allocation relationship. The insurer was able to retain its existing fund managers while expanding and diversifying with managers we helped find.
We introduced detailed data and risk analytics, which enabled the insurer to enhance its governance structure. This also helped simplify and streamline the company’s operating model across multiple group entities and reduce costs.
US $16.2 trillion in global assets under advisement1
US $548 billion in global assets under management2
More than 11,900 investment strategies rated3
More than 3,000 asset managers rated4
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