Insurance Asset Risk EMEA 2020
19 October 2020, Hilton London Tower Bridge, 5 More London Place, Tooley Street, London, SE1 2BY, United Kingdom

Agenda

09:00

KEYNOTE: THE CHIEF ECONOMIST MACRO OUTLOOK ON GEOPOLITICAL TENSIONS AND KEY RISKS

  • How vulnerable is the world to a black swan event given the interconnectedness of assets and the financial sector?
  • Short term/long term consequences of the coronavirus.
  • Emergence of China as a global superpower (both as investor and as a source of opportunity for investment)– what associated risks and opportunities for the world economy does this bring?

- Do we have the necessary skillset to assess these risks and also take advantage of opportunities
- China's Belt and Road initiative – how do EU, UK investors compete?
- Has the coronavirus impacted this initiative?

  •  Geopolitical tensions

- Iran/US
- Trade tension between China and US
- Has Trump's trade wars made the US a more or less risky place to invest in?

  • Which trends/events will influence the longer-term outlook?
  • How will AI/Fintech influence the economy/outlook for insurers?

09:30

PANEL DISCUSSION: COVID-19 – WHAT IMPACT WILL THE VIRUS HAVE ON ASSETS AND HOW SHOULD INSURERS POSITION THEMSELVES IN THE COMING MONTHS TO WEATHER ANY STORM

  • How have financial markets been impacted so far?
  • Have markets responded in line with expectations when compared to similar historic scenarios?
  • What, if any long-term impact on global growth trends can we expect?
  • Will the outbreak be responsible for a global recession?
  • How have insurers investment behavior changed as a result
  • How do you position your portfolio to weather the storm?
  • What lessons have we learned that will influence the way we respond from an investment perspective in the case of a further similar pandemic risk?

Paneliist: Prasun Mathur, Private Assets Lead, Aviva UK

Panellist: Nick Dixon, Investment Director, Aegon UK

 

10:15

INVESTMENT LEADERS PANEL: KEY INVESTMENT RISKS AND STRATEGIC PORTFOLIO POSITIONING

  • What do you anticipate to be the biggest threats to the asset side of your balance sheet over the coming 12 months
  • How are you readying your portfolio in anticipation?
  • Which factors are influencing your investment decisions and how are you responding??

- Monetary policies, political risk and geopolitical uncertainties, regulatory risk, ESG drivers, economic cycle, Brexit?
- Is a Negative Brexit outcome still a realistic conclusion and if so, where does that leave us?
- Is in-house or outsourcing the answer to these challenges?

  • The insurance business cycle in the context of a low yield/low interest rate environment

- How has the insurance business model changed due to low yield and low interest rate environment both in recent time and historically?
- If we are set to remain in a low yield/low interest rate environment for a prolonged time, what is a sustainable business model and what is it contingent on?
- Do we feel we have been pushed into an illiquid/higher risk strategy against our better judgement – how well protected are we now should rates rise again?
- How do we need to change our behavior? Should we be looking to change our approach on the liability side instead of the investment side?

  •  As insurers are filling their balance sheet with long-term illiquid loans, should insurers be more bank-like in assessing credit? Should they and can they outsource credit decisioning within a simple mandate?

Panellist: Wim Vermeir, Chief Investment Offier, AG Insurance & Group Head of Investments, Ageas
Panellist: Antonio Tedesco, Head of Group ALM and SAA, Generali

Panellist: Massimo Di Tria, Group Chief Investment Officer, Cattolica Assicurazioni (Subject to final confirmation)

Moderator: Russell Busst, CEO Conning Asset Management Ltd and European CIO

11:00

Morning Coffee Break

11:25

PLENARY: TRADE FINANCE

Speaker: Chris McGinley, Federated Hermes

11:45

PANEL: ASSESSING CLIMATE ASSOCIATED ASSET RISK – WHAT TOOLS AND APPROACHES ARE AVAILABLE AND HOW EFFECTIVE ARE THEY?

  • How beneficial and enduring will the EU ESG taxonomy prove to be?
  • How could the taxonomy be further developed/enhanced?
  • TCFD recommendations – should these be compulsory or voluntary?
  • How far down the supply chain should you analyse and apply ESG criteria?
  • How do you come up with your own view of what is green and what isn't green?
  • Identifying green washing – do you look-through to see what is labeled as green and if so, how?
  • PRA stress tests – to what extent are the stress tests helpful in understanding risks to the balance sheet and in understanding the impact of climate risk on assets?
  • Using climate VaR to assess vulnerabilities in assets.
  • What 3rd party help/tools/data is available?
  • What key financial risks arising from the climate impact on physical risks have you identified and how are you approaching/managing these risks?
  • What in practice does an investment strategy look like that respects the 2 degree threshold?
  • What data/tools are available to help track progress against the 2 degree target?

 

Panellist: Russ Bowdrey, Senior ALM Manager, Aviva (subject to final confirmation)


Speaker: Johanna Köb, Head of Responsible Investment, Zurich Insurance Company Ltd. (Subject to final confirmation)

 Panellist: Corrado Pistarino, Chief Investment Officer, Foresters Friendly Society

 

12:30

KEYNOTE ADDRESS: NEXT STEPS TOWARDS MEETING THE 2050 CARBON NEUTRALITY GOAL – THE CIO PERSPECTIVE

  • Are we currently doing enough to meet that target or do the current measures fall short?
  • How do we transition to the next larger goal in the battle against climate risk?
  • How does policy and regulation need to change in order to meet that goal?

Keynote speaker: Lars Haram, CIO & Head of Asset Management, Oslo Pensjonsforsikring

13:00

Lunch

13:50

IDEAS EXCHANGE: SMALL BREAK-OUT GROUPS FOR A FACILITATED ROUNDTABLE DISCUSSION PROPOSED ROUNDTABLE DISCUSSION IDEAS INCLUDE:

  • Efficient ways to extend duration under Solvency II
  • Outsourcing vs. in-house
  • Managing currency risk
  • How can insurance firms be more agile?
  • Fin tech and technology Investments
  • Libor transition
  • Assessing opportunities in emerging market debt
  • Real Assets – opportunities and challenges around real estate and infrastructure

14:50

PANEL: POLICY, REGULATION AND THE INSURANCE INDUSTRY OUTLOOK POST-BREXIT

  • What are the key priorities for regulators and policy setters?
  • How are regulators monitoring and managing the threat from a prolonged low interest rate environment?
  • Initial market reactions during this initial transition phase?
  • What will be the key implications for UK and European Insurers post-Brexit?
  • How will EU economies be impacted and what will this mean for EU exposures and asset risk and asset performance?
  • What investment opportunities and risks do we see emerging from this new era?
  • How is the ABI, Bank of England/PRA and FCA interacting across range of issues.
  • How do UK regulators expect to co-ordinate post-Brexit with European regulators?
  • How will alignment with regard to SII and Climate risk work post-Brexit?

Panellist; Andrew Bailey, Director of Financial Risk, Just Group plc

15:35

Afternoon Coffee Break

16:00

PANEL DISCUSSION: SOLVENCY II IN REVIEW

  • Long-term equity investment

- What has been the response to this new asset class? What impact has this had on insurers' appetite for private equity markets?
- What further clarity and guidance over implementation questions is required /can we expect in order for more insurers to take advantage of this new opportunity?

  • The 2020 Solvency II review -

- Update on expected timelines.
- What can and should we expect in future changes?
- Spotlight on key areas for review:

  •  Matching adjustment
  •  Volatility adjustment
  •  Negative interest rates stress test
  • Green capital risk charges?

- How might future changes translate into portfolio management?

Panellist: Lauri Saraste, Director, ALM and Solvency, LocalTapiola Life

16:45

INVESTMENT LEADERS PANEL: WHERE ARE INSURERS LOOKING TO NEXT FOR INVESTMENT OPPORTUNITY?

  • Challenges around asset origination
  • Which asset classes are in favour and which are making you cautious?
  • As private equity, real estate, infrastructure become more mainstream, which asset classes now constitute "alternative" and are accessible to insurers?
  • How are insurers approaching opportunities in timberland, ILS etc?
  • Developments in the asset reinsurance market

Panellist: James Kenney, Head of Capital Management, Legal and General Capital


Panellist:
Grigory Spivak, Director, Asset Re, Pacific Life Re

17:30

End of Conference and Networking drinks reception

Sponsor

Co-sponsor

Roundtable sponsor