A survey conducted by State Street highlights 53% of insurers plan to increase their investment exposure to emerging markets, as persistent low volatility in Europe and the US continues.
The research from State Street, which surveyed 140 insurance executives that are involved in their company’s investment strategies, revealed that most are planning significant changes to their plans in the coming year.
According to the survey, 65.3% of insurers based in the Americas said they are going to increase their exposure to emerging markets over the next year.
Similarly for firms in the Europe, Middle East and Africa (EMEA) 59.6% said they too will increase investment in emerging markets, while only 28.6% of firms in the Asia Pacific region said they will.
With interest rates in the US and Europe at near zero levels, and volatility in fixed income, commodities and currencies (FICC) at an all-time low, the emerging markets such as Brazil, Mexico, China and South Africa are becoming more attractive for insurers.
Furthermore with more capital from global investors flowing through emerging markets, financial instruments are becoming more sensitive to global financial conditions, prompting further interest from insurers with their investment strategies.
More Insurers to Move to Emerging Markets for Investment – State Street Survey
A survey conducted by State Street highlights 53% of insurers plan to increase their investment exposure to emerging markets.