2023 Insurance Outlook: Resolve to solve with a restocked toolkit

Tim Antonelli, CFA, CAIA, FRM, SCR, Insurance Strategist and Portfolio Manager, Wellington Management Max Davies, CFA, CAIA Insurance Strategist, Wellington Management

The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.

Key points

Before looking ahead to 2023, let’s look back for a moment. The amount of change that the world has undergone over the past few years is astounding. After a cataclysmic 2020 and a very eventful 2021, 2022 has been marked by unsettling geopolitical issues, lower (and slowing) global economic growth, rising inflation and interest rates, and monetary policy tightening in the US and elsewhere. The market-friendly “Goldilocks” market environment that characterized much of the past decade seems like a lifetime ago. Against this still uncertain backdrop, one thing is clear: What has worked for insurance asset owners in years gone by won’t necessarily carry the day going forward. With that in mind, we would encourage you to reevaluate your investment toolkit ahead of the new year and be prepared to enter it armed with some creative, actionable ideas. Here are four that we believe may help insurers successfully navigate 2023:
  1. Adopt (no, embrace) a solutions-oriented mindset
  2. Approach illiquid allocations through a more nuanced lens
  3. Consider a portfolio “pivot” from growth to value equity
  4. Pursue environmental, social, and governance (ESG) integration 2.0
To hear more about these ideas please click the link below to read our full 2023 Insurance Outlook.
Wellington Management
Wellington Management

Insurers have been building investment partnerships with Wellington since 1975. Our goals since then have remained evergreen – to exceed the investment objectives and service expectations of our clients. As an integral part of Wellington’s global investment platform, our dedicated Financial Reserves team offers a breadth and depth of resources and experience to serve our insurance clients as a go-to thought partner, risk manager, and trusted advisor for complex investment challenges. Today’s unprecedented challenges require unconventional solutions, and our collaborative strategic and proactive risk management approach helps our clients to be well-prepared.

Rich Coffman
Americas
rmcoffman@wellington.com
+1 617 951 5311

Max Davies, CFA
APAC
mdavies@wellington.com
+852 2846 6011

Sarah Marschok
Americas
smmarschok@wellington.com
+1 617 790 7170

Bob Sharma, CFA
EMEA
bssharma@wellington.com
+44 20 7126 6068

www.wellington.com/en

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