In our “Top 10 Investment Ideas for Insurers in 2016,” we warned of a possible sea change in the economic environment during 2016, with the potential for material unforeseen risks emerging at some point. While we could in no way have predicted with any conviction the dramatic change in the geopolitical environment that occurred over 2016, there is little doubt that a sea change has occurred.
Mercer has identified 10 investment ideas that we believe are pivotal to the successful management of an insurer’s assets through this period of uncertainty. We highlight the nature of the likely benefit for each idea – split between governance, financial and operational. While not all of these ideas will be appropriate for every insurer, they are intended to provoke debate around an appropriate course of action. We would be happy to discuss these ideas with you in more detail.
Optimize the Investment Operating Model.
Protect the Downside.
Capture Emerging Risks and Opportunities.
Investigate Alternative Return Generators.
Investigate Real Assets.
Understand and Utilize Liquidity.
Integrate Environmental, Social and Governance (ESG)
Adopt Smarter Implementation.
Consider Alternative Risk Quantification Measures.
Align Management Information with Need for Dynamism.