The need for financial institutions to evolve their management of liquidity risk as the interest rate environment continues its uncertain road to a new equilibrium is a key focus for regulators in the UK and around the world.

Insurers should be taking a fresh look at credit, seeking out the opportunities to include carefully selected quality assets in their portfolios. This was the key message that came out of an Insurance Investment Exchange roundtable held in conjunction with Loomis Sayles Investments, writes David Worsfold, Contributing Editor.

Life insurers must brace themselves for the impact of “history’s largest inter-generational wealth transfer” with US$7.8trn of assets under management at the 40 largest global life insurers potentially in play.

The Prudential Regulation Authority (PRA) has set out its determination to maintain the momentum of reform of the solvency regime for UK insurers following the passing of the Financial Services and Markets Act 2023 (FSMA).

The extent to which insurers in the European Economic Area (EEA) invest in a range of investment funds – significantly ahead of government bonds – is revealed in the latest data snapshot published by the European Insurance and Occupational Pensions Authority (EIOPA). It also exposes the reluctance of insurers scross the continent to plough investments into infrastructure.

Corporate bonds are a well-established part of the investment universe for insurers and pension funds but is this asset class starting to give rise to concerns about the risks it might pose?