Regional insurers lack a holistic approach to ESG adoption, but appear likely to increasingly use exchange-traded funds as they increase their usage of the principles.
Life insurance firms in Asia and globally are said to be seeking infrastructure investments to source reliably strong returns while reducing their interest in poorly performing real estate.
The country insurers' offshore asset allocations will likely remain much lower than the regulatory limit of 15% this year, despite their need to locate higher levels of return.
Regional life insurance firms holding corporate bonds that have been downgraded to junk would need to sell them to maintain solvency ratios and capital requirements.
The Hong Kong-based insurer is looking to investment-grade bonds in the region as it seeks decently yielding debt that is unlikely to be downgraded into junk territory.
With depressed domestic bond yields, Japan insurers have little choice but to allocate more into alternatives and risk assets in order to meet their insurance policy needs.