- Nearly four out of five will increase budgets over the next two years, global study shows
- Less than one in 10 handle all asset-liability management in-house
Insurers and investment managers look set to invest more into stress testing, scenario modelling and asset liability management (ALM) over the next two years, according to a new global study*.
Nearly four out of five (79%) plan to increase both spending and effort in these areas, with 24% planning dramatic increases.
The survey from Ortec Finance, of investment managers responsible for $10.48 trillion assets under management, shows that most outsource their ALM studies, with just 9% conducting them entirely in-house. Around 23% outsource completely, while 68% outsource some elements.
Nearly half (45%) assess the risks of assets while 37% assess the risk of liabilities. 10% assess the risks of both in isolation, and only 8% of respondents consider the combined risks on both sides of the balance sheet.
Hamish Bailey, Managing Director UK, and Head of Insurance & Investment said: “Scenario modelling, stress testing and ALM seem to be an area of focus for insurers and investment managers with many planning to increase investment over the next two years. This survey reflects what we are seeing in our own client base with a combination of increased market volatility and continued investment in complex asset classes emphasizing the need for robust risk management approaches.”
Ortec Finance supports insurers and asset managers by providing advanced scenario analysis, balance sheet simulation, and portfolio optimization tools that take account of dynamic asset/liability interactions, liquidity and solvency constraints and help navigate market uncertainty to help make data-driven, resilient investment decisions.
For further information visit https://www.ortecfinance.com/en/industries/insurance-companies
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Notes to editors
* Ortec Finance commissioned independent research company Pureprofile to interview 100 senior executives working in insurance asset management or in investment management firms supporting insurers in May 2025. Survey respondents are located in the UK, France, Germany, Switzerland, Hong Kong, Malaysia, Singapore and Norway. Collectively the organisations they work for manage around $10.48 trillion.
For more information, contact:
Phil Anderson, Perception A.
phil@perceptiona.com /0044 7767 491 519