According to Fitch Ratings, insurers currently have limited opportunities to invest in long-term assets, including sustainable infrastructure and renewable energy projects. The report’s authors believe that high capital requirements are the reasons for this limitation.
The European Commission earlier proposed to reduce capital requirements for insurers, that would free up €120 billion for the economic recovery after Covid-19. According to the EU Commissioner, lowering capital requirements for insurers will free up €90 billion in the short term, and another €30 billion - in the long term.
Photos are from open sources.