Asian Insurers Look More to Passive, Alternative Strategies: Broadridge

The video discusses the increasing trend of passive investments among insurers, highlighting the appeal of fixed income investments in ETF formats. It explores alternative investments as a response to low yields and identifies growth factors in the insurance sector, such as the lack of a strong pension safety net. The video also covers the growing interest in ESG investments in Asia and the outsourcing habits of Asian insurers. Finally, it addresses the role of private equity in insurance portfolios and the cautious approach insurers are taking due to concerns about overvaluations and liquidity.

What is one of the main reasons insurers are moving towards passive investments?

• To increase their exposure to equities

• To reduce management fees

• To focus on short-term gains

• To diversify their portfolios

Why is the insurance market expected to grow in regions with weaker pension safety nets?

• Owing to the rise in cash investments

• Due to high real estate prices

• Because of increased government subsidies

• As a result of the need for personal financial protection

What is a significant challenge for ESG investments in Asia?

• High implementation costs

• Lack of interest from investors

• Over-regulation by governments

• Infancy stage of ESG practices

What change has been observed in the outsourcing habits of Asian insurers?

• They are seeking external expertise due to regulatory changes

• They are focusing solely on in-house management

• They are reducing their outsourcing activities

• They are outsourcing more to local managers

What concern is associated with private equity investments?

• High liquidity

• Overvaluation and illiquidity

• Short investment horizons

• Lack of investor interest