December Insurance Funds Perspectives


HOT OFF THE PRESS


Mercer's 2014 Investment Survey of Accident Compensation Insurers Report is now available to survey participants. The survey remains the only one of its kind for Australian and New Zealand insurers, collecting data on the current investment strategy and management practices of Accident Compensation Insurers in order to analyse industry trends and provide a reference point to set new benchmarks for industry best practice. Through this survey and report, Mercer seeks to identify how Accident Compensation Insurers balance the conflicting business goals of long-term sufficiency with management of short-term balance sheet risk.


The 2014 survey covers investment assets of A$85.3 billion – more than the A$71.0 billion of total investment assets held by the APRA-regulated general insurance industry as at June 2014; reflecting the relatively large scale of Accident Compensation Insurers’ operations compared to most other general insurers.

Click here for a snapshot of the report highlights.
 


APRA FEEDBACK ON CAPITAL ADEQUACY ASSESSMENT


APRA recently wrote to general insurers and life companies to provide feedback on best practice and improvements following a detailed review of individual insurers’ Internal Capital Adequacy Assessment Process (ICAAP) reports. The feedback will also be of interest to state-based, non-APRA regulated Accident Compensation Insurers. Learn more >


HEALTH FUNDS: GOODBYE PHIAC, HELLO APRA

Health insurers will be taking the time now to consider the investment and capital implications as PHIAC transitions to APRA. Learn More>


MITIGATE INVESTMENT OPERATIONAL RISK

Operational failures have proved costly to investors. As alternative investments, unlised assets and fund of funds are now widely held institutional investments, insurers need to ensure that investment manager operations and implementation risks are know in advance, properly mitigated and acceptable prior to the appointment of a manager. Learn more >


GLOBAL MULTI-ASSET CREDIT - EQUITY-LIKE RETURNS WITHOUT THE VOLATILITY

Multi-asset credit strategies have historically delivered returns that are comparable to those of equity markets, but with lower volatility.  Correlations with equity markets vary, but, importantly, they appear to reduce when markets are stressed.  An allocation should therefore help if equity markets were to experience a substantial fall.  Learn more >



DAA DASHBOARD

Mercer’s Dynamic Asset Allocation Dashboard provides a handy summary of Mercer’s current asset class Find out which we consider to be attractive, unattractive and which we have a neutral view on. Download >