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:
- Adopt (no, embrace) a solutions-oriented mindset
- Approach illiquid allocations through a more nuanced lens
- Consider a portfolio “pivot” from growth to value equity
- 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.