Choose language:
The conversion of the investment strategies is bound to the development and the possibilities, which offer the financial markets.
In the last years a substantial structural change coined/shaped the national and international financial markets. The main cause lies in the changed world-economical surrounding field.
Because of the increasing globalization of the financial markets, the borders of the individual national and international market segments were eliminated. This internationalization had the consequence that the and susceptibility of the financial markets increased. The insurance company-seen now with its investment decisions with new chances and risks confronts itself.
The fortune management of an insurance company forms no self purpose, but serves the covering of the future obligations. The risk that fortune management becomes an investment strategy, which leaves the temporal structure of the received obligations unconsidered. Thus date and cost-fair supply of the promised achievements is endangered on a long-term basis.
This objektivierbare risk must have influence on the investment strategies of the insurance company. This influence can be represented by the comparison of two extremely different pension funds.
The already closed pension fund A, which takes up no more new acquisitions and whose existence predominantly of pensioners and older candidates consists, possesses due to its short term liabilities a very much shorter plant horizon than the again created pension fund B. the length of the plant horizon represents thus the risk ability of the investor. Pension fund A can be received regarding the value stability of the investments only a small risk. The pension fund B, whose existence consists predominantly of younger candidates, does not need to do at least regarding its small liquidity need without each short term investment risk. Pension fund B will be able to gain in principle higher net yields opposite pension fund A due to the longer plant horizon.
This example clarifies that insurance companies are dependent regarding their investment strategy on its received obligations (risk profile).
In practice the situation does not present itself however as simply, as outlined above.
We found here 127 articles.
We found here 3 related websites.
Index | Privacy | Terms Of Use | Sitemap | Feedback
Printer Friendly Format![Bookmark page - Investment restriction [2 / 2]](/site/templates/standard/images/icons/favourites.gif){kind=icon}
Bookmark this page
Back to "Insurance"
Back to top