As we prepare for a turbulent 2023 we reflect on two topics which are always firmly on insurers’ radar: regulatory change, and sustainability.
In the UK a review of Solvency II has led to proposed changes which we expect will help to unlock investments in productive finance, and lead to positive policyholder outcomes. We consider the changes here in the context of a wider audience, as we note commonality with several other insurance regulatory regimes.
Regarding sustainability, many insurers have made net zero commitments with the aim of decarbonising their asset (and liability) portfolios fully by 2050 or earlier. The availability and variety of assets that can help achieve these aims is ever increasing, and we look here at a less familiar topic suited to this agenda, namely that of “Natural Capital”.
The contents of this document may not be reproduced or distributed in any manner without prior permission.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect nor is it to be construed as any solicitation and offering to buy or sell any investment products. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Any security(ies) mentioned above is for illustrative purpose only, not a recommendation to invest or divest. Opinions stated are valid as of the date of this document and are subject to change without notice. Information herein and information from third party are believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Derivatives carry a high degree of risk. Exchange rate changes may cause the value of the overseas investments to rise or fall. If investment returns are not denominated in HKD/USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. Please refer to the relevant offering document including the risk factors for further details.
This material has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.