Life firms set sights on asset management

Insurers are making changes to outmoded business models


The life insurance sector is facing an identity crisis. Depressed yields on traditional fixed-income assets and heavy regulation – the twin legacies of the financial crisis – have accelerated a re-evaluation of the traditional business model.

The capital-intensive work of providing end-customers with long-term savings and protection products, based on regular premium inflows and embellished with guarantees, is proving increasingly difficult to sustain. Not only are these expensive to administrat