Hiscox Insurance Portfolio this week claimed an upturn in the insurance cycle makes it the perfect time to invest in selected stocks.
The division has highlighted four phases within the insurance cycle: cheating, pain, fear and restoration.
Cheating is where insurers' reported results are worse than their actual results and reserves are raided to boost profits.
This is followed by the pain phase where insurers can no longer draw on the fat of previous years' reserves to prop up their results.
The final phase is where insurers are forced into facing reality with some executives losing their jobs and mass restructuring within the companies.
The restoration phase comes when insurers' restructuring starts to bear fruit and boost results.
Hiscox Insurance Portfolio believes that because the insurance industry is now in the restoration phase, and some technology stocks have been exposed as being over-hyped, now is the time to buy insurance stocks.
The Hiscox Insurance Fund has 35 insurance stocks covering a wide range of markets and sectors.