The details of how risk and actuarial teams can work more closely with investment and capital management functions to build resilient portfolios are complicated.
Teams need to develop practices that can withstand regional shocks, systemic events, and evolving market dynamics.
This is especially the case when looking to diversify across countries and continents.
“'Diversification is the only free lunch in investing',” said Nick Humphreys, Partner, Managing Director – Global Head of Insurance at Man Group, quoting the investment grandee Harry Markowitz, “Despite facing more investment constraints than most investors (e.g. ALM currency, duration, regulatory capital charges, etc.), insurers need to keep asset portfolios well diversified to ensure long-run profitability.”
This topic will be discussed at Insurance Investor Live | Europe, where panellists will share their ideas on how best to achieve actuarial and risk operational efficiencies on a global scale.
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