Insurers’ total investments increase on average by 1.15%; fixed income assets rise by just 0.91%

Written by Adam Cadle

20/07/2020

Insurers’ total investments have increased (per quarter) on average by 1.15% while fixed income assets have increased on average by 0.91% in the last 15 quarters (last observation Q4 2019), according to latest figures published by EIOPA.

EIOPA said this supports the view that the share of fixed income assets in total investments is following a decreasing trend as insurers carry out a gradual shift towards alternative investments and asset classes with potentially higher yields.

The overall investments in equities in the EEA insurance market is slightly increasing, driven mainly by unlisted equities, which might be an indication of a tilt towards higher risk and therefore potentially higher yields.

In the current macro-financial environment, one of the major concerns for the insurance market is the exceptionally ultra-low/negative level of interest rates, EIOPA said.

In addition, the COVID-19 outbreak has severely affected the macroeconomic and market conditions worldwide, with the launch of support packages and monetary easing of some central banks and governments taking place to mitigate the negative effects.

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