In this H1 2023 Asset Management Market Update, we are pleased to provide our thoughts on the current state of the insurance market for asset managers and the funds they manage, and some thoughts on what to expect in H2 2023.
During the past few years of the “hard” market cycle, procuring Professional Indemnity (PI)/Errors & Omissions (E&O) and Directors’ and Officers’ (D&O) Liability insurance – collectively known as investment management insurance (IMI) for asset managers – has been challenging. Premiums have now stabilized, and in some cases we are seeing premium reductions. The combination of aggressive insurer growth targets and an injection of new capital has meant that, to an extent, a more competitive insurance marketplace has returned. However, in light of recent events in the banking sector, renewal results for IMI may be impacted if an asset manager or its funds have meaningful direct or indirect exposure to the troubled banks and/or have been materially impacted by the periods of capital markets volatility following these events.
Environmental, social, and governance (ESG) issues including climate change remain high on the agenda of firms and regulators worldwide, with increasing engagement at board and senior executive level on a range of these issues. Other current areas of focus are the changing regulatory framework for financial services, including the Consumer Duty and the sustainability disclosure requirements. The operational resilience of firms, including the challenges brought about by the recent turmoil in the banking sector and/or geopolitical events in Eastern Europe. At WTW, we remain fully engaged on the latest trends and developments impacting asset managers, and we are focused on achieving the best possible outcomes for our clients irrespective of where we are in the insurance market cycle.
Should you have any questions or wish to discuss any of these issues in greater detail, please do contact me or a member of your WTW team.
To read the full Market Update download it here:
| Title | File Type | File Size |
|---|---|---|
| The State of the Market – June 2023 Asset Manager Market Update | 1.2 MB |
WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements. The information given in this publication is believed to be accurate at the date of publication shown at the top of this document. This information may have subsequently changed or have been superseded and should not be relied upon to be accurate or suitable after this date.
