Insurance Investment Trends, ETFs Offer Smart Solutions

August 1, 2012 — Since 2008 the insurance industry has been facing a variety of business challenges that put outsized demands on their investment activities. Significantly lower interest rates, increased investment market volatility, rising regulatory capital requirements and a continued soft macro-economic environment have served to constrain the industry’s risk appetite and pressurize its investment activities. These conditions have motivated insurance entities to rethink traditional ways of managing investment portfolios and explore new practices that can help to manage their portfolios more effectively and efficiently. Increasingly, they are incorporating liquid, low-cost exchange traded funds (ETFs).