Greater risk appetite for insurers despite geopolitical uncertainty: study

SINGAPORE - Weak economic growth and historically low negative rates reinforce a trend towards greater risk appetite for insurers despite geopolitical uncertainty.

This comes from a BlackRock-commissioned study, which surveyed 315 senior insurers, which found only 8 per cent of respondents plan to reduce their exposure to investment risk.

A persistent low interest rate environment was the serious market risk to investment strategies that was most cited, according to 59 per cent of respondents, followed closely by asset price volatility (57 per cent). These results were before the Brexit vote in late June.

Another flash poll of more than 100 insurers "found the anticipated effects of Brexit are seen as reinforcing pre-existing trends, particularly the notion that interest rates will remain lower for longer," said the report.

rachaelb@sph.com.sg