From the diesel emissions scandal to the perceived exploitation of zero-hour contracts, there have been many examples in recent years of how failures in the way companies are run can have a harmful impact on the environment, society and investor returns.
A growing body of evidence suggests that ESG investing fosters better investment decisions, performance and risk management. While insurers lag other institutional investors in embracing ESG investing, momentum is building and things look set to change.
Asset prices do not seem to be adequately reflecting the long-term systemic risk from global climate change. Wellington Management’s Alan Hsu explains why insurers are likely to lead the repricing of climate risk – and how multi-decade public-equity approaches might help.
Insurers are looking more closely than ever at the current trend of green bond investment. But is this just a fashion? And what should investors be aware of when putting money into this still nascent sector? David Turner reports
The ageing population in Europe, often viewed as a great risk for the life sector, may also provide attractive investment opportunities through retirement and care home properties. Axa’s real estate business is already active in the space. Asa Gibson reports
Within the booming UK real estate industry, where a lack of supply has inflated valuations and rental prices, the build-to-rent sub-sector offers an alternative revenue stream for insurers. Cintia Cheong reports
Real estate debt can offer a set of outcomes well suited to the needs of insurers, including a solid relative value proposition, stable cashflows, strong investor protections and transparent security against physical underlying assets. John Barakat, head of real estate finance, M&G Investments explains
The projected growth of e-commerce and urbanisation has seen real estate investors showing increasing interest in urban logistic centres. Paul Walsh explores the nascent asset class as an opportunity for insurers.