European insurers struggling to diversify their investments

Boston Consulting Group (BCG) and Axa Investment Managers (AXA IM) conducted a study on the investment strategies of European insurers. More than two-thirds of the 30 companies questioned confirmed that the low interest rates remain the main challenge. For 58% of the insurers surveyed, the second concern relates to the new regulations. Only 47% believe that risk management is a problem. In order to overcome the difficulties caused by the low interest rates, insurers wish to invest in assets with much higher returns. The authors of the study conclude that the financial crisis and the new regulations encourage insurance companies to hold bond assets.