via The Outsourcing Monitor - June 2020, Insurance Asset Outsourcing Exchange
The credit crisis of 2007 -2008 was catalyst to an unpreceded move toward third party insurance asset management and use of investment consultants.
As shown in Figure 1, new mandates outsourced in 2010 were more than double the number outsourced in 2008, and outsourcing to third party managers has continued at that high level. In that same time frame, the number of new investment mandates facilitated through investment consultant manager searches increased from 27 percent to 46 percent (Figure 2).
The investment management industry is a proven and responsive resource for insurance companies’ changing investment needs. It is reasonable to expect a similar response to the investment issues of COVID-19.
Source: The Outsourcing Monitor - June 2020, Insurance Asset Outsourcing Exchange
Figure 1: New Investment Mandates Outsourced to Third Party Investment Managers
Figure 2: Portion of New Third Party Investment Mandates Placed Through Investment Consultants