ING research reveals insurers likely to diversify investments

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Insurers are set to increase their exposure to several riskier asset classes in the next five years, according to research from ING Investment Management.

ING said that 68% of active fund managers and investment intermediaries expect insurers will raise their allocation of funds to equities, with 22% believing there will be a “significant” rise.

The investment manager added that 67% think insurers will increase their exposure to emerging market securities, and that 61% believe insurers will reduce theie exposure to sovereign debt.

ING deputy chief information officer Jelle van der Giessen 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.”

 

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