Insurance Asset Risk EMEA 2020 (Virtual Conference)

OPEN

INVESTMENT LEADERS PANEL: KEY INVESTMENT RISKS AND STRATEGIC PORTFOLIO POSITIONING

•  What do you anticipate to be the biggest threats to the asset side of your balance sheet over the coming 12 months
• How are you readying your portfolio in anticipation?
• Which factors are influencing your investment decisions and how are you responding??

- Monetary policies, political risk and geopolitical uncertainties, regulatory risk, ESG drivers, economic cycle, Brexit?
- Is a Negative Brexit outcome still a realistic conclusion and if so, where does that leave us?

•  Is in-house or outsourcing the answer to these challenges?
• The insurance business cycle in the context of a low yield/low interest rate environment

- How has the insurance business model changed due to low yield and low interest rate environment both in recent time and historically?
- If we are set to remain in a low yield/low interest rate environment for a prolonged time, what is a sustainable business model and what is it contingent on?
- Do we feel we have been pushed into an illiquid/higher risk strategy against our better judgement – how well protected are we now should rates rise again?

• How do we need to change our behavior? Should we be looking to change our approach on the liability side instead of the investment side
• As insurers are filling their balance sheet with long-term illiquid loans, should insurers be more bank-like in assessing credit? Should they and can they outsource credit decisioning within a simple mandate?

Anna Vita, Financial Risk and Actuarial Director, Aviva
Antonio Tedesco, Head of Group ALM and SAA, Generali
Roshan Lachman, Financial Risk Director, Phoenix Group
Wim Vermeir, Chief Investment Offier, AG Insurance & Group Head of Investments, Ageas
Moderator: Russell Busst, CEO Conning Asset Management Ltd and European CIO

KEYNOTE ADDRESS: WALKING THE TALK: ONBOARDING CLIMATE CHANGE IN INVESTMENT DECISIONS

• How to implement a responsible strategy?
• How sustainability is becoming mainstream?
• How can insurers leverage their internal capabilities and implement a climate change strategy when taking investment decisions.

Michèle Lacroix, Head of Group Investment Risk and Sustainability.

INVESTMENT LEADERS PANEL: WHERE ARE INSURERS LOOKING TO NEXT FOR INVESTMENT OPPORTUNITY?

• Challenges around asset origination
• Which asset classes are in favour and which are making you cautious?
• As private equity, real estate, infrastructure become more mainstream, which asset classes now constitute "alternative" and are accessible to insurers?
• How are insurers approaching opportunities in timberland, ILS etc?
• Developments in the asset reinsurance market

Massimo di Tria, Group Chief Investment Officer, Cattolica Assicurazioni
Alex Wharton, Head of Insurance Relationships, Aviva Investors
Emily McDonald, Investment Director, Credit, Aviva Investors
Irene Carella, Head of ALM and Asset Allocation, Gruppo Assicurativo Poste Vita 
James Kenney, Head of Capital Management, Legal and General Capital

Moderator: David Walker, Insurance Asset Risk

BREAKOUT DISCUSSION GROUPS

• Key investment risks and strategic portfolio positioning. Hosted by Conning
• Where are insurers looking to next for investment opportunity
• Outsourcing - Improved governance and better value for money is often the reason why we outsource. Hosted by Russell Investments
• Designing equity portfolios in the new world – how to incorporate the need for outperformance, with lower fees and embedded ESG criteria. Hosted by Royal London Asset Management
• Matching Adjustment Assets- Hosted by M&G

CHAIR’S CLOSING REMARKS

OPEN

PANEL: COVID-19 – WHAT IMPACT WILL THE VIRUS HAVE ON ASSETS AND HOW SHOULD INSURERS POSITION THEMSELVES IN THE COMING MONTHS TO WEATHER ANY STORM

• How have financial markets been impacted so far?
• Have markets responded in line with expectations when compared to similar historic scenarios?
• How have insurers investment behavior changed as a result?
• Is investment in infrastructure the answer to economic recovery?
• Could we be facing stranded assets as a result of Covid 19?
• How do you position your portfolio to weather the storm?
• What investments are going to work in the future world?
• The long-term outlook - what does this mean for future investments? What invest
• Will there continue to be a big challenge to find good yielding investments?
• What lessons have we learned that will influence the way we respond from an investment perspective in the case of a further similar pandemic risk?

Ahmed Adam, Head of Investment Oversight, Director, ReAssure
Prasun Mathur, Head of Private Assets, Aviva UK
Thomas Fiedler, Head of Section, Group Investment Management ALM/SAA International Entities, ERGO GROUP AG
Moderator: Richard Glenn, Head of EMEA Insurance Distribution & Strategy, Invesco 

KEYNOTE ADDRESS: NEXT STEPS TOWARDS MEETING THE 2050 CARBON NEUTRALITY GOAL – THE CIO PERSPECTIVE

•  Are we currently doing enough to meet that target or do the current measures fall short?
• How do you continue to focus on a sustainable investment strategy in times of stress and crisis?
• How do we transition to the next larger goal in the battle against climate risk?
• How does policy and regulation need to change in order to meet that goal?

Lars Haram, CIO & Head of Asset Management, Oslo Pensjonsforsikring

PANEL: ASSESSING CLIMATE ASSOCIATED ASSET RISK – WHAT TOOLS AND APPROACHES ARE AVAILABLE AND HOW EFFECTIVE ARE THEY?

• How beneficial and enduring will the EU ESG taxonomy prove to be?
• How could the taxonomy be further developed/enhanced?
• TCFD recommendations – should these be compulsory or voluntary?
• How far down the supply chain should you analyse and apply ESG criteria?
• How do you come up with your own view of what is green and what isn't green?
• Identifying green washing – do you look-through to see what is labelled as green and if so, how?
• PRA stress tests – to what extent are the stress tests helpful in understanding risks to the balance sheet and in understanding the impact of climate risk on assets?
• Using climate VaR to assess vulnerabilities in assets.
• What 3rd party help/tools/data is available?
• What key financial risks arising from the climate impact on physical risks have you identified and how are you approaching/managing these risks?
• What in practice does an investment strategy look like that respects the 2 degree threshold?
• What data/tools are available to help track progress against the 2 degree target?

Corrado Pistarino, Chief Investment Officer, Foresters Friendly Society
Johanna Köb, Head of Responsible Investment, Zurich Insurance Company Ltd.
Russ Bowdrey, Senior ALM Manager, Aviva
Claudia Bolli, Head Responsible Investing, Swiss Re
Carlota Garcia-Manas, Senior Responsible Investment Analyst, RLAM

Moderator: Vincent Huck, Editor, Insurance Asset Risk

PANEL: POLICY, REGULATION AND THE INSURANCE INDUSTRY OUTLOOK POST-BREXIT

• What are the key priorities for regulators and policy setters?
• How are regulators monitoring and managing the threat from a prolonged low interest rate environment?
• Initial market reactions during this initial transition phase?
• What will be the key implications for UK and European Insurers post-Brexit?
• How will EU economies be impacted and what will this mean for EU exposures and asset risk and asset performance?
• What investment opportunities and risks do we see emerging from this new era?
• How is the ABI, Bank of England/PRA and FCA interacting across range of issues.
• How do UK regulators expect to co-ordinate post-Brexit with European regulators?
• How will alignment with regard to SII and Climate risk work post-Brexit?

Andrew Bailey, Director of Financial Risk, Just Group plc
Hugh Savill, Director of Regulation, Association of British Insurers
Erik Vynckier, Chair of the research board of the Institute and Faculty of Actuaries & NED, Foresters Friendly Society
Moderator: Vincent Huck, Editor, Insurance Asset Risk

PANEL: SOLVENCY II IN REVIEW

 Long-term equity investment

• What has been the response to this new asset class? What impact has this had on insurers' appetite for private equity markets?
• What further clarity and guidance over implementation questions is required /can we expect in order for more insurers to take advantage of this new opportunity?

The 2020 Solvency II review 

• Update on expected timelines.
• What can and should we expect in future changes?
• Spotlight on key areas for review:
• Matching adjustment
• Volatility adjustment
• Negative interest rates stress test
• Green capital risk charges?
• How might future changes translate into portfolio management?

Lauri Saraste, Director, ALM and Solvency, LocalTapiola Life
Tony O'Riordan, CFO, New Ireland Assurance
Hugh Savill, Director of Regulation, Association of British Insurers
Hugh Francis, Director of External Reporting Developments, Aviva
Justin Wray, Head of Policy Department, EIOPA
Moderator: Vincent Huck, Editor, Insurance Asset Risk

BREAKOUT DISCUSSION GROUPS

• Covid-19- what impact will the virus have on assets and how should insurers position themselves in the coming months to weather any storm? – Hosted by Invesco
• Assessing Climate associated asset risk – what tools and approaches are available and how effective are they?
• Policy and Regulation
• ESG – Regulatory Requirements and Achieving Ambitious Climate Investments - Hosted by Natixis

VISIT THE EXHIBITION

SPEED NETWORKING

KEYNOTE: THE CHIEF ECONOMIST MACRO OUTLOOK ON GEOPOLITICAL TENSIONS AND KEY RISKS

• What short and long-term consequences and impacts on global growth trends can we expect as a result of the covid-19 crisis?
• How deep will the recession be? How long will it last? What will the recovery look like?
• How does this scenario compare to the previous financial crisis of 2008?
• What action can we expect from the central banks and governments?
• What does the future hold for the financial market infrastructure?
• Outlook for inflation
• How vulnerable is the world to a black swan event given the interconnectedness of assets and the financial sector?
• Emergence of China as a global superpower (both as investor and as a source of opportunity for investment)– what associated risks and opportunities for the world economy does this bring?
• Do we have the necessary skillset to assess these risks and also take advantage of opportunities
• China's Belt and Road initiative – how do EU, UK investors compete?
• Has the coronavirus impacted this initiative?
• Geopolitical tensions
• Iran/US
• Trade tension between China and US
• Has Trump's trade wars made the US a more or less risky place to invest in?
• Which trends/events will influence the longer-term outlook?
• How will AI/Fintech influence the economy/outlook for insurers?

Keynote speaker: Ludovic Subran, Chief Economist, ALLIANZ

CLOSING COMMENTS