Insurance Investment Forum 2025

The year 2024 was a strong year for many parts of the global economy and benefitted a number of asset classes, including US equities and private credit. And although growth is expected to continue along similar lines in 2025, economies are facing a number of challenges.

A second term of Donald Trump as President of the United States could see inflation picking up, if he is to implement a broad range of tariffs, further accelerating deglobalisation.

The Chinese economy is still floundering and is likely to require further stimulus to prop up GDP growth. Meanwhile, tensions between China and the US over Taiwan could see further volatility.

In addition, insurers are also getting ready for reporting on climate risk to their investments and the carbon intensity of their portfolios.

Australia’s new mandatory climate reporting regime means the largest emitters and corporates will be required to disclose detailed information on their climate-related risks and opportunities starting 1 January 2025, while smaller entities will become subject to the new disclosure requirements from 1 July 2026 and 1 July 2027.

How do insurers apply this new regime across the thousands of line items in their portfolios? And how do you avoid having reporting requirements influence the investment strategy to a large extent?

With an outlook of high volatility and greater demands on resources, is it possible for insurers to immunise portfolios against this turmoil?

Perhaps we can take a leaf out of the book of meerkats. Despite their diminutive stature, these creatures are tough and highly intelligent. Academics have found that meerkats are good at problem solving and use complex coordinated behaviour that rivals that of chimps, baboons, dolphins and even humans to solve tasks.

They have also evolved to cope with desert life and don’t need to drink water. They get all the moisture they need from the insects they eat.

But most remarkably, meerkats are immune to certain snake venom and in some parts of the world, people prize these mongoose species as house guards because they can battle with deadly snakes, including cobras. When bitten they might feel unwell for several hours but usually make a full recovery.

Can insurance investors evolve to cope with a higher risk environment too and develop a portfolio that is immune to the short term fickleness of the market environment?

We will discuss these topics and more at the [i3] Insurance Investment Forum, now in its 13th year.

We are looking forward to seeing you there.

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