Insurers‘ Investment in Infrastructure Overview and Treatment under Solvency II
Journal
The Geneva Papers on Risk and Insurance - Issues and Practice
ISSN
1018-5895
Type
journal article
Date Issued
2014
Author(s)
Abstract (De)
The financial market environment poses serious challenges for insurance companies to provide
stable returns on a long-term basis, as particular traditional asset classes are currently characterised
by generally low interest rates and high volatility. Against this background, the aim of
this paper is to study infrastructure investments from an insurer’s perspective. In particular, based
on a categorisation of different types of infrastructure investments, we provide an overview of
main characteristics along with risks and chances. In addition, the treatment of different infrastructure
investments under Solvency II regulations is studied, which can have a considerable
impact on an insurer’s asset management decisions. The study shows that the attractiveness of
infrastructure investments strongly depends on the type of investment and its treatment under
Solvency II and that considerable risks can be involved.
stable returns on a long-term basis, as particular traditional asset classes are currently characterised
by generally low interest rates and high volatility. Against this background, the aim of
this paper is to study infrastructure investments from an insurer’s perspective. In particular, based
on a categorisation of different types of infrastructure investments, we provide an overview of
main characteristics along with risks and chances. In addition, the treatment of different infrastructure
investments under Solvency II regulations is studied, which can have a considerable
impact on an insurer’s asset management decisions. The study shows that the attractiveness of
infrastructure investments strongly depends on the type of investment and its treatment under
Solvency II and that considerable risks can be involved.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Palgrave Journals
Volume
39
Start page
351
End page
372
Pages
22
Subject(s)
Division(s)
Eprints ID
255492
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Insurers‘ Investment in Infrastructure Overview and Treatment under Solvency II.pdf
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Format
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