Insurers warm to risk factor diversification

The drive towards better risk diversification is pushing insurers to rethink their investment process in terms of risk factors rather than traditional asset classes. Blake Evans-Pritchard reports on some of the approaches being taken


Insurers are beginning to look to pension funds for examples of how better to understand investment risk and, in particular, how different risk exposures might interrelate.

The area of concern is diversification, a key issue for insurers who experienced alarming and unexpected correlations between asset classes during the 2007–08 financial crisis prompting a rethink of their approach to asset investment. Investors noticed that assets that had previously worked independently of one another moved

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here