Insurance Investment Forum 2025

While 2024 was a year of strong global growth, especially in equity and private credit markets, partly on the back of high expectations for the contribution of artificial intelligence to future economic expansion, 2025 has started quite differently.

Initial optimism over the election of Donald Trump as US President and the prospect of a favourable regulation and taxation regime for companies made way for concerns over trade tariffs, stubbornly high inflation and increasing ruptures between the US and Europe, as President Trump seemed to seek closer ties with Russia.

This has created an investment environment that is considerably more uncertain, and the risk of negative tail events has steadily increased.

In addition, Australian insurers are also getting ready for new reporting rules on climate risk and the threat they pose to their investment portfolios.

The 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 in a meaningful way?

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. Please join us for open and robust discussions on these topics.

We are looking forward to seeing you there.

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