Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers

This paper develops a theme identified in recent insurance sector development work: that more developed insurance markets are desirable as insurers play a more effective institutional investment role, whether this objective seeks deeper and more liquid bond or capital markets, or to see more investm...

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1. Verfasser: Thorburn, Craig (VerfasserIn)
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Sprache:English
Veröffentlicht: Washington, D.C The World Bank 2021
Schriftenreihe:Other Financial Accountability Study
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520 3 |a This paper develops a theme identified in recent insurance sector development work: that more developed insurance markets are desirable as insurers play a more effective institutional investment role, whether this objective seeks deeper and more liquid bond or capital markets, or to see more investment in long term assets such as infrastructure or in support of climate finance. It explores the perspective of domestic insurers, summarizing positions regarding asset selection and key drivers of current and desired asset structures. The paper draws on interviews in several deep-dive countries supplemented by additional engagement for a more representative global reach. It then discusses a range of solutions that may be considered by policymakers categorized under efforts to: grow the sector so it can play a more substantive role; improve how assets are packaged and made available to insurance companies so they are more investable; review risk-based capital rules to ensure that they encourage and reward the right behavior; and check other regulations do not present unintended barriers. The paper concludes that, although domestic insurers are interested in making investments that meet these goals, they are constrained by barriers that are almost entirely external to their own operations and outside their control. With some adjustment to supply and regulatory settings, insurers should translate their interest into action, increasing their role and improving the contribution to this desirable development outcome. The paper is intended to be particularly relevant for policymakers and practitioners with less experience within insurance company operations who are looking to better understand and respond to insurance decision making 
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Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers Craig Thorburn
Washington, D.C The World Bank 2021
1 Online-Ressource
txt rdacontent
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Other Financial Accountability Study
This paper develops a theme identified in recent insurance sector development work: that more developed insurance markets are desirable as insurers play a more effective institutional investment role, whether this objective seeks deeper and more liquid bond or capital markets, or to see more investment in long term assets such as infrastructure or in support of climate finance. It explores the perspective of domestic insurers, summarizing positions regarding asset selection and key drivers of current and desired asset structures. The paper draws on interviews in several deep-dive countries supplemented by additional engagement for a more representative global reach. It then discusses a range of solutions that may be considered by policymakers categorized under efforts to: grow the sector so it can play a more substantive role; improve how assets are packaged and made available to insurance companies so they are more investable; review risk-based capital rules to ensure that they encourage and reward the right behavior; and check other regulations do not present unintended barriers. The paper concludes that, although domestic insurers are interested in making investments that meet these goals, they are constrained by barriers that are almost entirely external to their own operations and outside their control. With some adjustment to supply and regulatory settings, insurers should translate their interest into action, increasing their role and improving the contribution to this desirable development outcome. The paper is intended to be particularly relevant for policymakers and practitioners with less experience within insurance company operations who are looking to better understand and respond to insurance decision making
Emerging Markets
Finance and Development
Finance and Financial Sector Development
Insurance
Insurance and Risk Mitigation
Private Sector Development
http://elibrary.worldbank.org/doi/book/10.1596/36354 Verlag URL des Erstveröffentlichers Volltext
spellingShingle Thorburn, Craig
Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers
Emerging Markets
Finance and Development
Finance and Financial Sector Development
Insurance
Insurance and Risk Mitigation
Private Sector Development
title Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers
title_auth Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers
title_exact_search Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers
title_exact_search_txtP Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers
title_full Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers Craig Thorburn
title_fullStr Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers Craig Thorburn
title_full_unstemmed Developing Insurance Markets Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers Craig Thorburn
title_short Developing Insurance Markets
title_sort developing insurance markets motivations and initiatives to grow the institutional investment role of emerging market insurers
title_sub Motivations and Initiatives to Grow the Institutional Investment Role of Emerging Market Insurers
topic Emerging Markets
Finance and Development
Finance and Financial Sector Development
Insurance
Insurance and Risk Mitigation
Private Sector Development
topic_facet Emerging Markets
Finance and Development
Finance and Financial Sector Development
Insurance
Insurance and Risk Mitigation
Private Sector Development
url http://elibrary.worldbank.org/doi/book/10.1596/36354
work_keys_str_mv AT thorburncraig developinginsurancemarketsmotivationsandinitiativestogrowtheinstitutionalinvestmentroleofemergingmarketinsurers