Adding Perspective to Insurance Asset Allocation Decision-Making: Exploring the “Efficient Surface”
Adding Perspective to Insurance Asset Allocation Decision-Making: Exploring the “Efficient Surface”
In Conning’s latest Viewpoint, “Adding Perspective to Insurance Asset Allocation Decision-Making,” authors Nyan Paing Tin and Matt Reilly introduce the concept of the “efficient surface”—a multidimensional framework that goes beyond traditional risk-return analysis. For insurers navigating today’s complex investment landscape, this approach integrates critical factors like risk-based capital (RBC) charges, asset-liability dynamics, and regulatory constraints.
The paper illustrates how portfolios with similar risk-return profiles can differ dramatically in capital efficiency, and why insurers must consider more than just volatility and reward. With advanced modeling techniques and scenario-based simulations, Conning helps insurers build tailored strategies that align with enterprise goals and regulatory realities.
Whether optimizing capital usage or refining strategic asset allocation, this Viewpoint offers a fresh perspective for insurers seeking smarter, more resilient investment decisions.
The paper illustrates how portfolios with similar risk-return profiles can differ dramatically in capital efficiency, and why insurers must consider more than just volatility and reward. With advanced modeling techniques and scenario-based simulations, Conning helps insurers build tailored strategies that align with enterprise goals and regulatory realities.
Whether optimizing capital usage or refining strategic asset allocation, this Viewpoint offers a fresh perspective for insurers seeking smarter, more resilient investment decisions.
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