Insurers’ investment strategies uniquely position them to play a stabilizing role in the economy and provide an ideal source of long-term funding. However, insurers are concerned about the various policy trends that could reduce the flow of premiums available and create disincentives to long-term investing.
Our report, Funding the Future aims to explain why this is so. We describe what drives insurers’ investment decisions and the distinctive characteristics that make insurers natural, low-risk and long-term investors. Then we explain the benefits this provides to policyholders and the broader economy. Finally, we identify the relevant policy developments and how they may affect those benefits.