64% of US insurers expect an increase in investment risk tolerance in 2023

Written by Adam Cadle

25/01/2023

Sixty-four per cent of US insurers expect an increase in investment risk tolerance in 2023, according to a new survey US life and P&C insurers, sponsored by Conning.

Sixty-three per cent of those who expect to increase their investment risk tolerance said they intend to improve their management and measurement of investment risk.

The survey also revealed that 73% of US insurers believe risk-adjusted returns are the number one investment priority, with 83% expecting to invest 10% or more of their portfolio in private assets in the next two years.

Fifty-seven per cent of respondents said their companies were highly engaged with ESG in 2022, up from 41% in 2021 and twice the level reported for 2018.

“Insurers’ commitment to ESG has consistently increased over the years in terms of both operational risk and investment management,” Conning managing director, head of insurance research, Scott Hawkins, stated.

“While they are aware of a possible recession and its impact, insurers have not let go of the need to develop ways to incorporate ESG standards across their operations and portfolios.”

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