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The Actuary The magazine of the Institute & Faculty of Actuaries
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Infrastructure policy document

The IFoA has published a policy briefing paper on infrastructure finance. 

11 APRIL 2019 | THE ACTUARY TEAM 


The
paper uses the UK as a lens to understand issues affecting infrastructure finance globally. It argues that a key cause of the ‘investment gap’, with insufficient private investment in the infrastructure projects that society needs, is that investors and project sponsors have different priorities. 

The paper examines some possible ways to resolve this mismatch, looking at what makes infrastructure projects investable, barriers to investment faced by pension funds and insurers, sustainable investment, and how government can address the investment gap. There is also a case study looking at Islamic ‘sukuk’ bonds, and how the government could potentially adapt this approach to increase private infrastructure investment without increasing its own debt. 

The work was led by the policy team, supplemented by the expertise of the Infrastructure Working Party and the Risk Management and Finance & Investment practice boards.