BlackRock Finds Insurance Industry Riskier Than in 2008

The transcript discusses the complexity of investment strategies in a low yield environment. BlackRock argues that diversifying into alternative assets can mitigate concentrated risks. Insurers like MetLife and Prudential are exploring commercial property and private market debt for better yields. BlackRock's study, using their Aladdin platform, assesses asset performance under various scenarios, including a 2008-like crisis. The study highlights the importance of diversification and the potential benefits of illiquid investments.

What are the reasons BlackRock believes diversifying into alternative assets is beneficial for insurers?

How has the low interest rate environment affected insurers' investment strategies?

What types of assets are insurers considering to hold more of, according to the text?

Why did BlackRock conduct the study mentioned in the text?

What is the significance of the 2008 scenario in the context of the study?