Asset managers have a “significant” opportunity to raise funds from Asian insurers, which are increasing the sums they allocate internationally.
The prediction comes from research firm Cerulli Associates, which observed that overseas investments from Korean insurers accounted for 12% of the total portfolio last year, an increase from 9% in 2014.
“Taiwanese life insurers best exemplify this scenario,” said Ken Yap, managing director of Cerulli's Singapore office. “Foreign investments accounted for 63.3% of their collective asset allocation at the end of 2016.”
Although most Asian insurance markets lag far behind Taiwan in their international exposure, the trend is for global allocations to rise, helped by increasingly permissive regulation.
The greatest prize for asset managers is the expanding Chinese market. Although only 2% of Chinese insurance assets are invested abroad, this sum is increasing rapidly thanks to an overall boom in insurance assets, which rose by a quarter in the life insurance segment last year.
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