ESG Principles and Alternative Assets Insurers are increasingly incorporating environmental, social, and governance (ESG) principles into alternative asset investments, such as private equity, real estate, and renewable energy infrastructure. These principles help insurers mitigate risks, enhance diversification, and align with societal trends toward sustainability. ESG factors also improve risk-adjusted returns by addressing long-term risks like climate change, social impact, and governance transparency. For actuaries, integrating ESG into investment strategies supports better portfolio performance, reduces volatility, and positions insurers for long-term success in a rapidly evolving market.
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