2020: Diversification to New Asset Classes and A Renewed Focus on ESG
The continued low-yield environment during the COVID-19 pandemic witnessed insurers grappling to find better returns for their investments. How did they address these challenges?
February 2021
As the pandemic tested business operations and resiliency over the last few months, insurers looked for ways to diversify into new asset classes. While they had to re-prioritize many long-term goals, environmental, social and governance (ESG) continued to be their top priority.
In this conversation, Steffen Fuchs, investment strategy at VPV, Monika Henschke, vice president at State Street, spoke with Andreas Niklaus, senior vice president and member of the Executive Management Board at State Street, about their operational responses to COVID-19, preparations for a future of low interest rates, internal investment priorities and how they achieved ESG targets amid the crisis. They explain how a clear-headed drive towards achieving ESG targets despite the pressure on returns and yields came up as a silver lining during the pandemic.
