Amundi Insurance Insights #2

In the ever-evolving landscape of the insurance sector, many of the themes identified in 2023 continue to reverberate in 2024. Against a backdrop of slowing growth, high interest rates, geopolitical turmoil, environmental risks, as well as regulatory shifts, insurers are urged to take proactive measures to better position themselves to navigate the complexities of the investment landscape and capitalize on emerging opportunities.

In this second edition of the Insurance Insights, we introduce a bespoke framework allowing to integrate biodiversity-related risks into insurance portfolios. Additionally, we present two case studies that could inspire your investment decisions whether it is for monetizing excess cash or adjusting your bond portfolio strategy.

Through a case study, we delve into the potential opportunities, in terms of both yield and capital efficiency, that can derive from the implementation of the matching adjustment mechanism proposed by some insurance regulations in a high-interest rate environment.

In this article, we explore through a case study how the implementation of an innovative solution via a fund structure could enable insurers to unlock the premium stemming from the aligned interests between insurers and banks.

Recognizing biodiversity loss as a material risk for investors, including insurers, we introduce a bespoke ESG investment framework developed by Amundi’s teams enabling the integration of biodiversity considerations into portfolio construction.