40% investment income growth expected in largest life markets

Written by Adam Cadle

18/06/2024

A 40% rise in investment income, on average, for insurers in the largest eight life markets in the five years to 2027 has been forecast by Swiss Re.

The increase is expected to be driven primarily by higher bond yields.

“Asset management capabilities will be the first differentiator in the race for assets,” Swiss Re stated.

“The ‘hunt for yield’ in the low-rate years led to deeper integration of life insurance and asset management. Large insurers built sophisticated asset management divisions, including expertise in private asset origination, and expanded their investment-linked product offerings in which policyholders bear more of the investment risk. Mobilising this asset management capacity for de-risking products and innovation will be key for success in gaining assets.”

Related Articles