Outsourcing Trends in Insurance Investment Management

This white paper discusses the increasing trend of insurers outsourcing their investment management to third-party asset managers. It outlines the drivers behind this decision, noting that smaller insurers are more likely to outsource due to limited internal resources. The paper presents findings from a survey conducted by Conning, which indicates that cost reduction and access to specialized expertise are primary motivations for outsourcing. Insurers are seeking not only competitive returns but also diversified investment strategies that can enhance their operational capabilities. The document details how insurers are expanding their investment universe, particularly into alternative assets, to achieve better returns and mitigate risks. It emphasizes the importance of partnering with asset managers who understand the specific needs of the insurance sector. The conclusion highlights that outsourcing can provide insurers with the necessary skills and knowledge to navigate complex investment landscapes effectively, ultimately leading to improved performance and risk management.