Insurance Investment in Sustainable Infrastructure

     With approximately US$33 trillion in assets under management (AUM), insurers rank alongside pension funds as the world’s largest long-term investors. Historically, insurers invest less than 2.5% of their portfolio in infrastructure even though infrastructure offers an attractive investment opportunity because it can deliver predictable and stable cash flows that match insurers long-term liabilities while also generating an illiquidity premium. Additionally, as underwriters, insurers are well-positioned to understand physical climate risks and the advantages of investing in infrastructure that is low carbon and resilient to climate change. The virtuous cycle between investment and underwriting make insurers exceptionally well-positioned to lead the way on climate-smart investments. 

     This report breaks down the technical, regulatory, and financing challenges insurers face in scaling investment into low-carbon and climate-resilient infrastructure and offers solutions and insights into how the UN system and development finance institutions (DFIs) can support the industry to allocate a greater portion of its AUM into this critical asset class.

For more information, please see the full report attached below.

The content was originally posted on www.undp.org

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_DISCLAIMER:

_{The views expressed in the blog and the report attached are the author's own and do not necessarily reflect those of the SDG Philanthropy Platform. The SDG Philanthropy Platform is a global initiative that connects philanthropy with knowledge and networks that can deepen collaboration, leverage resources and sustain impact, driving SDG delivery within national development planning. It is led by the United Nations Development Programme (UNDP) and Worldwide Initiatives for Grantmaker Support (WINGS), and supported by the Conrad N. Hilton Foundation, Ford Foundation, Oak Foundation, Brach Family Charitable Foundation, and many others.}