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Our views 01 February 2022

Insurance investment outlook 2022

20 min read

2021 saw the world returning to some sense of normality, albeit a ‘new normal’ and one that was frequently disrupted. After the helplessness of 2020, we had vaccines, and then anti-virals, to help us fight back.

The ramp-up in vaccine rollout programs across the globe saw economies begin to re-open as pandemic related restrictions started to ease. However, the story of the pandemic is not finished (in particular, noting the impact of the latest Omicron mutation): this doesn’t seem a virus to defeat, so much as one we have to learn to live with.

For insurers, 2021 was a year in which they could be more strategic and forward thinking again, around their business strategies and objectives, operating models, and investment portfolios. On the latter, throughout 2021 we saw an uptick of clients revisiting their investment strategies and we supported this through strategic asset allocation analysis. The classic ‘search for yield’ conundrum remained at the forefront of insurers’ thinking around investment portfolios, but with complications around asset valuations now being more fully priced (and exposed) and with material geopolitical risks remaining.

Read in full: Insurance investment outlook 2022

The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.