Insurers 'must understand risk on non-traditional assets'

Modelling and regulatory impact of new asset classes must be considered in search for higher yield

Insurers must carefully manage the risks of investing in non-traditional asset classes, as they look for ways to increase yield on their investment portfolios, according to insurers and investment managers.

Incorporating new asset classes into existing investment portfolios could pose significant risks to firms that do not have a good knowledge of how they work, said speakers at a panel discussion at Insurance Risk's Solvency II & Insurance Risk conference in London. Insurers need to consider