Alternative Paths: Alt Assets May Offer Insurers Greater Yields, Returns and Risk Management
Alternative investment strategies, or “alts,” may offer insurers greater yields than the near-zero interest rates currently offered by traditional fixed-income strategies. Should all insurers rush in?

After more than a decade of historically low interest rates, insurers are hungry for higher yields. Alts encompass a broad range of asset classes and they may offer insurers greater income and portfolio diversification. However, insurers would be wise to ensure that any new asset they add to their portfolios aligns with their investment strategy, that they have the skills and knowledge to properly manage it, and they understand the costs and regulatory impact.

In Conning’s latest Viewpoint, “Alternative Paths: Alt Assets May Offer Insurers Greater Yields, Returns and Risk Management,” Rich Sega, Global Chief Investment Strategist, offers insurers an overview of considerations regarding alternative investment strategies.
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