Guest post by AB (AllianceBernstein)

Income is scarce, markets are more turbulent, and many assets look set for a run of below- average returns. Insurers, like all investors, are thinking more creatively about their investment choices. We see three paths they can take to enhance portfolio returns while still staying within a capital-efficient framework.

In this era of structurally low yields and stricter regulatory oversight, earning investment income is tough—and it’s probably going to stay that way. Insurance CIOs realize that the traditional investing strategies they’ve relied on in the past are unlikely to meet their future needs. These challenges are encouraging insurers to think creatively about a wider range of investments. For most, however, the quest for higher returns means moving out on the risk curve. The big question is: Just how far off the beaten path can insurers go?

To review the full article from AB (AllianceBernstein), download the Insurance Asset Management, North America report.