Due to the ultra-low interest rates faced by many Asian countries, insurers tend to get higher returns than those from traditional investments in sovereign bonds and other less risky instruments.
Yun Ng, the Broadridge Director, said investing in passive and alternative assets can solve the problems that insurers face: “Alternative assets can generate stable and higher returns.”
Fixed income instruments show growth. The total return on insurance assets in average ranges from 4% to 6%.
Asset managers improve their capabilities to be of benefit for insurance companies. “Asian insurers often look for external managers with experience in insurance asset management,” Ng concluded.
Photos are from open sources.