From: Captive International

Captive insurance companies will have to consider their asset allocation strategies in the wake of recent developments in the US economy.

A panel of experts at the 2023 CICA annual conference in California pointed out that after years of low interest rates, and therefore low investment yields, recent efforts by the US Federal Reserve (the Fed) at fighting inflation have led to a sudden rise in interest rates.

Speakers at the panel session, titled ‘Back to the future’, pointed out that the Fed had tightened its monetary policy to the highest level since the 1980s, one of the last periods of high interest rates to battle inflation.

Panelists included Anjanette Fowler, managing director and senior vice president at PNC Institutional Asset Management, Gregory Cobb, director/insurance solutions at Sage Advisory Services, Gary Osbourne, vice president at Risk Partners, and Travis Terzer, head of business development at CapVisor Associates.