Insurers hunt for 'scale premium' in infrastructure assets


Insurers will need to invest in large, long-term infrastructure projects to achieve desired returns, as burgeoning demand is forcing down yields on smaller projects.

The illiquidity premium obtainable in small, shorter duration infrastructure investments is shrinking as insurers and other institutional investors increase their demand for physical assets, say investors.

But higher returns can be obtained on larger infrastructure projects, if an insurer has sufficient scale to take the debt of an