LIFE
Inflation May Push Insurers To PE Investments, Survey Shows Insurers believe inflation will be around for two to five years, eventually tamed by rising interest rates.
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By Steven A. Morelli
nsurers are expecting the reappearance over the next few years of two infamous villains, inflation and recession, according to Goldman Sachs’ annual global insurance survey. Inflation was a clear leader in the top concerns race with 28% of insurance
companies globally citing it as the greatest macroeconomic risk to their portfolio for the first time in the 11 years that Goldman has conducted the survey. In fact, 91% of companies in the Americas (79% globally) expect inflation to be a risk this year. After inflation, it was a tight race for the next three, with 20% citing U.S. monetary tightening, which goes hand in hand with an inflation response. The majority of respondents (87%) said they think the Federal Reserve will raise rates at least three times this year, with 36% in the Americas expecting more than four increases.
Credit and equity volatility are next on the roster of risks at 18%, with the fourth horseman, U.S. recession, closing in at 16%. Sixty-three percent of respondents said they believe an economic recession will hit the United States in the next two to three years, with Asian companies leading the pack with that prediction. On the plus side, the respondents did not expect recession to begin this year, said Michael Siegel, Global Head of Insurance Asset Management for Goldman Sachs Asset Management. “You could see this year looks like clear sailing,” Siegel said during a media preview
Allocation To Private Assets Over the next 12 months, are you planning to increase, maintain or decrease your allocation to private assets? Source: Goldman Sachs Insurance Asset Management’s Insurance Survey 2022
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InsuranceNewsNet Magazine » June 2022
