Welcome to the Quarter 1 2022 investment update designed for insurers and produced by Royal London Asset Management (RLAM).
Since our last update, there have continued to be periods of elevated market volatility – arising from new strains of Covid-19, renewed travel restrictions and lockdown measures, as well as concerns about inflation and the implications for QE and interest rates.
In addition, reviews of the regulatory frameworks for some of the key markets have continued – with various messages being provided around the likely direction of travel – particularly around climate risk integration and long-term balance sheet management mechanisms.
Within this quarterly update, we cover developments to the two main areas most prevalent to the asset side of insurers’ balance sheets – Investment Markets and Regulations. In addition, we highlight two investment themes we believe should be considered by many insurers at the present time around climate risk management and efficient integration within certain strategies.
The views expressed are those of the authors at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.