New research from ING Investment Management has revealed that over the next five years they expect insurers to dramatically increase their exposure to a range of asset classes.
The research is based on interviews with a number of UK based active fund managers and investment intermediaries.
Research has shown that 71 percent of insurers expect the sector’s investment in infrastructure to increase.
Furthermore, in an indication that they believe insurers will be willing to take on more risk, 68 percent of those interviewed anticipate that their allocation of funds to equities will rise, and 67 percent anticipate their exposure to emerging market securities will also increase.
Jelle van der Giessen, deputy chief investment officer of ING Investment Management, said: “The insurance sector has been hit hard by falling investment returns, which has played a key role in declining dividends from some companies in the sector.”
“Our research shows that only one in five UK based fund managers and financial intermediaries expect the situation here to improve, so insurers will increasingly look to diversify their investment portfolio to help increase returns.”
