The recent financial crisis and low interest rate situation coupled with the evolving regulatory requirements created strong incentives to review investment practices of insurance companies and to see whether this was aligned to objectives (required return, risk tolerance limits, liquidity needs, regulatory constraints, etc.).
We can help our clients with reviewing their current investment strategies and proposing alternatives, which respect the company’s liability profile, risk appetite and any applicable constraints such as tax, liquidity, regulatory limits or actions in stressed conditions. We can help both in setting up formal investment policy statements and modelling impact of different strategies.
Typical areas of suppor include:
- Definition of strategy to meet objectives (required return, risk tolerance limits, liquidity needs, regulatory constraints, etc.)
- Review of current investment strategies, proposing alternatives
- Benchmarking the performance of an internal / external asset manager
- Internal reporting for asset / liability matching, measurement of investments
- ALM implementation into actuarial / risk models
- Allocation of investment return (on line of business)
Our calculation tools can help you with this area. Click here for more information.