Insurers should consider a range of asset management techniques because of challenges from new regulations and a low-yield environment, a conference was told.
The issue was discussed at an Insurance Asset Management seminar, organised by Clear Path Analysis, where delegates were urged to consider techniques such as multi-asset funds, diversifications and off-setting techniques.
At the event, which was held under Chatham House rules, a speaker said: "There are two things going on at the moment. There's regulatory change, the fact that markets are volatile. Then we have a low-interest rate environment, and that's very scary now."
He said the industry needed to embrace different tactics. "The insurance industry is quite conservative and it's going take a little while for these ideas to gain attraction," he said.
The event was told life and non-life insurance firms would face different challenges. A speaker said different firms would need different strategies depending on the size of their budget, and whether they used a standard formula or internal model. She said: "The difference will be between life and non-life. It will become very different. The strategies will be very different."