Insurers struggle to manage risk of infrastructure U-turns

As life insurers increase their holdings of infrastructure assets, their exposure to political risk grows. There is no perfect hedge, but firms can understand political risk better and guard against it more effectively.

idfc-backed-infrastructure
Infrastructure: a growing area of interest for insurance companies

Infrastructure projects usually require a green light from governments, but as administrations and their policies come and go, that light can quickly turn from green to red.

Europe's prolonged low interest rate environment is pushing firms into infrastructure investments as they seek the illiquidity premium available for assets that would be difficult to sell quickly. But illiquidity also makes investors vulnerable to governments reneging on, or interfering with, infrastructure contracts, not

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here