PANEL DISCUSSION: INFLATION: SIMPLY TRANSITORY OR A PERMANENT HEADACHE ON THE HORIZON? HOW WILL GOVERNMENTS AND CENTRAL BANKS RESPOND AND WHAT ARE THE IMPLICATIONS FOR ASSET PRICES?
- Inflation Outlook:
- How did we get where we are today?
- What is the medium-term outlook for inflation? Are we on the precipice of a structural shift to a higher inflation environment or is this transitory?
- Policy responses
- What response is expected from the central banks in terms of interest rate policy? Will 'low for longer' continue?
- What should the focus and role of governments and the central banks be going forward?
- Will governments and central banks act in a coordinated manner to help the recovery, or is there disagreement as to how to proceed that could lead to conflicting policies?
- How can we expect the different central banks to approach the winding down of stimulus packages? Divergence between US, UK and European approaches and what this means.
- What will the likely policy responses mean for the pricing of government and corporate bonds and wider risk assets?
- Implications for insurers
- What does higher and more uncertain inflation mean for insurers from both a balance sheet and wider business model perspective?
- What challenges does this present for the entire insurance industry?
- What are the main risks for the asset side of insurers' balance sheets?
- Mitigation of inflation risks
- How should insurers manage inflation risk holistically across their balance sheets?
- Will reallocations of investments be needed? What strategies can asset owners use to avoid inflation risk and take advantage of opportunities?
Craig Inches, Head of Rates and Cash, Royal London Asset Management
Theresa Patricios, Head of Investments, Convex Insurance
Christian Wegener, Global Head of Investment Solutions, HSBC Life Insurance
Thomas Fiedler, Team Head, Group Investment Management, Strategic Asset Allocation,
ERGO International Entities
Corrado Pistarino, Chief Investment Officer, Foresters Friendly