Investment - Articles - Willis Towers Watson transfers Investment Solutions Group

 Marcus Bowser, Sales & Practice Leader, UK Life Consulting at Willis Towers Watson, said: “Insurers are grappling with a continued low-yield environment and shifting regulations, driving changes to their asset strategies, business models and risk appetite. While these changes have created some obstacles for insurers, they also represent an opportunity to consider how best to enhance their returns in a risk controlled and capital efficient way.”

 According to Willis Towers Watson, persistent external factors that are increasing demand for better asset allocation to raise investment yields include:

 Market outlook of risks are skewed to the downside over the medium term

 Solvency II and Prudent Person Principle – have forced more focus on and a deeper understanding of requirements for the management of insurer’s assets and investment risk

 Regulatory developments – such as MIFID II and PRIIPs are increasing the complexity of investment management for insurers

 Product innovation – driven by the need to enhance yields on investment products

 Increased systemic market risk – due to global linkage of markets through technology leading to more volatile outcomes

 Sustainable investment – becoming a significant and more visible topic for many insurers with reputational risks from being left behind

 Keith Goodby, Head of Insurance Investment Solutions Group at Willis Towers Watson, said: “Whilst ensuring the IISG retains its unique offering and close links with the Investment business, transferring to the ICT business will offer tighter integration of our insurance and investment capabilities, driving efficiencies in the service and the ability to uniquely develop Willis Towers Watson’s investment proposition for insurers.”