The infrastructure investment challenge for insurers

Financing the growth agenda

infrastructure-growth

Around the world, investment in infrastructure has been falling. Since the onset of the financial crisis, a lack of liquidity has made banks reluctant to take on extra long-term debt. The introduction of the Basel III framework has reinforced this hesitancy by increasing regulatory pressure on banks to hold extra capital against long-term projects.

The evaporation of funding for infrastructure has happened at the very time that governments are seeking to boost investment in the sector in the hop