CPIC Life puts stress on Belt and Road, weighs alt exposure

Insurance firms in the region would like to make more use of internal rating models and of ‘look through’ treatment of funds to reduce risk charges on private market investments.

Insurance companies in China are struggling to find long-term assets to match their liabilities. A senior official at a self-regulatory body has proposed some potential solutions.

Given the very long-term nature of their liabilities, insurers are ideally placed to take advantage of the illiquidity premium in alt assets, the group's Hong Kong CIO says.

Larry Wan, former CIO of AIA China, is positive about A-shares and wants Chinese insurers to use more external managers. Some are heeding his call.