Alternative assets for life insurers

In this paper, we discuss the use by life insurers of alternative assets, looking at regulatory developments and recent trends across geographies. We have adopted a pragmatic approach of defining “alternative assets” as those that do not trade on public markets. The large universe of alternative assets encompasses fixed income classes, such as infrastructure debt, equity release mortgages, and private equity. We first note key drivers behind why an insurer would seek exposure to this asset class. The rest of the paper is organized as follows:

• Market developments
• Market research results 
• Risk quantification
• Regulatory treatment
• Conclusion