Since our last update, the combined impact of geopolitical events and the changing outlook for growth and inflation made this first quarter very challenging for insurers.
In addition, reviews of the regulatory frameworks for some of the key markets continue to persist – with updates provided around climate risk integration and long-term balance sheet management mechanisms and reporting – with industry bodies providing responses to the overall proposals.
Within this quarterly update, we cover developments to the two main areas most prevalent to the asset side of insurers’ balance sheets - investment markets and regulations. In addition, we highlight two investment themes we believe should be considered by many insurers at the present time.
The views expressed are those of the authors at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.