Investment solutions and OCIO for insurance firms

We offer investment solutions for insurance companies of all sizes across the globe. Our research, advice, tools and implementation capabilities are designed to help you transform your investment program into a strategic differentiator. Use our research to help inform your decisions or work with us to assist in developing and executing your investment strategy, including integration of alternatives and sustainable investments.

Effective portfolio management for insurance companies

Fluctuating interest rates, volatile risk premiums and rising inflation are some of the issues driving increased complexity for insurance investment portfolios. That’s why many insurers are looking for better ways to optimize their investments, increase income, grow surplus and properly align risk.

We believe that with the right expertise and structure, efficient operations, effective execution and lower costs1, an insurance company’s investment program can grow enterprise value and provide a competitive advantage.

Our role goes beyond seeking to simply beat a benchmark, but working with our clients to customize investment solutions to help derive greater value from the investment portfolio through insurance-specific investment ideas, improved implementation, operational support, and the alignment of your portfolio with your specific geographic, regulatory, rating agency, liability, and liquidity requirements.

Chris Tschida, US Insurance Leader, discusses investment solutions for insurance organizations


Five common investment challenges facing insurers

Every insurance company and investment strategy is unique, however in our experience there are five common challenges. We can help you address these challenges by leveraging our deep expertise across all asset classes, our global scale, extensive manager research and dedicated team of insurance consultants.

Incorporating sustainability into insurer portfolios

The insurance industry is taking action on environmental, social and governance (ESG) considerations through ventures such as the UN Environment Program’s work on Principles for Sustainable Insurance. Internal and external stakeholders are increasing their scrutiny of ESG issues.

Whether you’re focused on risk management, regulatory compliance, or identifying potential investment opportunities, you will need to consider sustainability issues. For example, climate change poses significant risk on asset owners of all sizes around the world. We provide a number of tools that can help you understanding the potential impacts, benchmark against peers and implement changes.

Although this issue is complex and challenging, there are substantial growth and income opportunities in sustainable investments. We have worked with large insurers to build a complete, balanced solution, which fuses the objectives of seeking financial returns with acknowledging risks in a transitioning economy. Some of the investment strategies range from facilitating renewable power infrastructure and energy-efficient buildings to financing innovative green technologies and addressing crucial social issues such as inequality. We offer a variety of sustainable investing solutions for insurers.

Common questions about portfolio management for insurance companies

Every investment program has its own unique set of objectives and often requires internal and external resources to manage it. We flex our services to suit your requirements, creating a customized approach that works for you, no matter the size of your team. Depending on your needs, you may choose one or a combination of the following:

  • Digital: Do it yourself by accessing our digital manager research platform, MercerInsight®.
  • Advisory: Get help with our comprehensive investment consulting services.
  • Delegated: Have us implement and manage your investment strategy

When you engage us, we operate as an extension of your team. We can help guide you on your strategy and allocation, help you source new ideas and innovation through alternative markets and help you integrate ESG, diversity, equity, and inclusion (DEI), and impact investing considerations to target sustainably. We can also manage the implementation for you based on your desired direction. You will always maintain control of key decisions.

We use an open-architecture platform not affiliated with any one asset manager, giving us a true independent perspective. This allows you to customize solutions to match your specific requirements regarding returns, liabilities or liquidity. The platform also helps you execute your strategy through your in-house team, external managers, or a combination of both.

How we helped a large insurer adjust its portfolio operating model

The issue:

A global marine insurer needed to adjust to a new operating model. The process highlighted the company’s limited internal resources and inability to execute and nimbly adapt its investment strategy.

The in-house team wanted to retain control of manager selection but also explore new investment opportunities that capture yield, including moving into private markets.

The solution:

We began working with the insurer in an advisory capacity before progressing to an implemented consulting and discretionary delegated asset allocation relationship. The insurer was able to retain its existing fund managers while expanding and diversifying with managers we helped find.

We introduced detailed data and risk analytics, which enabled the insurer to enhance its governance structure. This also helped simplify and streamline the company’s operating model across multiple group entities and reduce costs.

Mercer investments and retirement consulting: How we can help

Whether you’re an employer, institutional investor, nonprofit organization, financial intermediary or family office, Mercer investments and retirement consulting aims to help you develop an investment solutions strategy unique to your situation, as well as provide the service and support you need.
  • Implementation and OCIO

    We can help you define, develop and implement your investment strategy by addressing areas such as governance, risk, sustainability and diversification. We flex our services to suit your needs and help you achieve your investment goals.
  • Sustainable investments 

    We help you build a sustainable investment strategy that integrates environmental, social and governance (ESG) considerations; diversity, equity and inclusion (DEI) factors and seeks an optimal mix between positive change and favorable returns.
  • Alternative investments

    Leveraging our existing relationships with hundreds of asset managers around the world, we can help you identify and source new investment strategies, opportunities, ideas and innovations across private markets and hedge funds. 
  • Strategic research 

    Become a member of the MercerInsight® Community today to get access to strategic research from hundreds of thought leaders around the world, including Mercer and third-party publishers. It’s complimentary and easy to join.
  • Asset manager research 

    By subscribing to MercerInsight®, an alliance with eVestment, you can gain access to data, analytics and our forward-looking research on asset managers and thousands of investment strategies across both public and private markets. 
  • Managing investment risk

    Our Mercer Sentinel team can help you conduct due diligence and mitigate operational risks across your portfolios and strategies. We assess asset managers, custodians and other service providers to help you deliver on your governance objectives.

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    See our Important Notices

    1. Fees and savings are not guaranteed
    2. Mercer cannot guarantee access to opportunities. Access is at the discretion of the investment manager.
    3. Mercer does not provide legal advice. You should contact your attorney before making any decisions with legal implications.