Global insurers increase risk appetite in low yield environment

Singapore

GLOBAL insurers are prepared to almost double their investment risk appetite as they feel the pain of decreasing yields brought on by loose central bank policy and a stuttering economy, so the fund management industry "has to raise its game" in supporting insurers, said BlackRock.

In a survey of 248 senior executives from insurance and reinsurance companies conducted by the Economist Intelligence Unit in June and July, 57 per cent planned to increase risk exposure in the next one to two years, up from 33 per cent a year ago.