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This press release is sponsored by the Insurance Asset Outsourcing Exchange and Eager, Davis & Holmes
Visit their websites at http://www.assetoutsourcingexchange.com and http://www.eagerdavisholmes.com
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Insurers Respond to Credit Crisis with Renewed Emphasis on Risk Management Louisville, KY – Insurance companies are adjusting their investment policies and practices in response to unprecedented challenges in the financial markets. These findings are based upon results of a survey of US-based insurance CFO’s and CIO’s by the Insurance Asset Outsourcing Exchange. Over half (53%) of insurance companies are strengthening risk management practices and 35% are making changes to their investment policies and guidelines. “The survey shows a fascinating link between the critical issues insurance companies face, the actions they are taking, and increasing use of third party investment managers and consultants,” observes David Holmes, Partner in the Louisville-based consulting firm Eager, Davis & Holmes. Over one-fourth (27%) of insurance company CFO’s and CIO’s expect to increase reliance on third party investment managers, and 14% plan to increase reliance on investment consultants. The survey finds that demand for third party investment management in most asset classes and investment styles is the same or increased compared to a similar measure taken in a 2008 Exchange survey. The survey finds that 40% of insurers are sticking with asset allocation targets based upon long-term capital market projections. “Most others are making tactical changes to get them through the current market and economic conditions, but remain committed to long-term asset allocation targets,” says Holmes. The survey finds that asset allocation changes recently implemented or planned in 2009 include increases to cash and reductions in common stock and other assets. “The changes reflect the need to take risk out of insurance general account portfolios and maintain or build liquidity,” says Holmes. Most companies aren’t yet halfway through the implementation of intended changes in asset allocation, according to the survey. Insurance company investment officers can request a complimentary report through the Exchange website at http://www.assetoutsourcingexchange.com. The Insurance Asset Outsourcing Exchange promotes knowledge about third party insurance asset management and serves insurance companies, investment managers and investment consultants. The Exchange was founded in September 2008 by Eager, Davis & Holmes. Visit the Insurance Asset Outsourcing Exchange at http://www.assetoutsourcingexchange.com Visit Eager, Davis & Holmes at http://www.eagerdavisholmes.com Contact: David Holmes; Phone: +1 502 657 6479; Email: dholmes@eagerdavisholmes.com ### |
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