Developing Insurance Markets : Insurance Companies and Infrastructure Investments
Higher insurance penetration and smaller infrastructure investment gaps has been correlated even after accounting for gross domestic product (GDP) levels, which indicates the insurance industry may have made some contributions to this development....
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okr-10986-363552021-10-14T05:10:46Z Developing Insurance Markets : Insurance Companies and Infrastructure Investments Shindo, Tetsutaro Stewart, Fiona DISASTER RISK FINANCE INSURANCE INFRASTRUCTURE INVESTMENT FINANCIAL REGULATION Higher insurance penetration and smaller infrastructure investment gaps has been correlated even after accounting for gross domestic product (GDP) levels, which indicates the insurance industry may have made some contributions to this development. Insurers have been promoting infrastructure investments as both asset owners and asset managers because this asset class makes sense from an asset liability management (ALM) viewpoint and they can leverage their asset management function. The stable and long-term cash flows of infrastructure assets naturally align with liabilities of insurers, particularly life insurers. Creating an ecosystem around infrastructure finance and different types of market players is of high importance. In a developing country where banks are already dominant in infrastructure financing and a risk-based framework for the banking sector constrains them from providing long-tenor financing, the roll-over model can work. Finally, governments and national supervisors can support infrastructure investments in several ways, including establishing a clear definition for infrastructure and compiling data, lowering capital charges on infrastructure investments (if their different treatment is evidence-based), facilitating credit enhancement mechanism and the increase of investible infrastructure projects, etc. In some cases, more clarity may be required on capital charges between infrastructure and securitized assets. Restrictions on direct investments to infrastructure can also be lifted under appropriate risk-based supervision in place unless being harmful to the interests of policyholders. 2021-10-13T14:59:08Z 2021-10-13T14:59:08Z 2021-06 Report http://documents.worldbank.org/curated/undefined/731841632205077536/Insurance-Companies-and-Infrastructure-Investments http://hdl.handle.net/10986/36355 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Accountability Study |
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English |
topic |
DISASTER RISK FINANCE INSURANCE INFRASTRUCTURE INVESTMENT FINANCIAL REGULATION |
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DISASTER RISK FINANCE INSURANCE INFRASTRUCTURE INVESTMENT FINANCIAL REGULATION Shindo, Tetsutaro Stewart, Fiona Developing Insurance Markets : Insurance Companies and Infrastructure Investments |
description |
Higher insurance penetration and smaller
infrastructure investment gaps has been correlated even
after accounting for gross domestic product (GDP) levels,
which indicates the insurance industry may have made some
contributions to this development. Insurers have been
promoting infrastructure investments as both asset owners
and asset managers because this asset class makes sense from
an asset liability management (ALM) viewpoint and they can
leverage their asset management function. The stable and
long-term cash flows of infrastructure assets naturally
align with liabilities of insurers, particularly life
insurers. Creating an ecosystem around infrastructure
finance and different types of market players is of high
importance. In a developing country where banks are already
dominant in infrastructure financing and a risk-based
framework for the banking sector constrains them from
providing long-tenor financing, the roll-over model can
work. Finally, governments and national supervisors can
support infrastructure investments in several ways,
including establishing a clear definition for infrastructure
and compiling data, lowering capital charges on
infrastructure investments (if their different treatment is
evidence-based), facilitating credit enhancement mechanism
and the increase of investible infrastructure projects, etc.
In some cases, more clarity may be required on capital
charges between infrastructure and securitized assets.
Restrictions on direct investments to infrastructure can
also be lifted under appropriate risk-based supervision in
place unless being harmful to the interests of policyholders. |
format |
Report |
author |
Shindo, Tetsutaro Stewart, Fiona |
author_facet |
Shindo, Tetsutaro Stewart, Fiona |
author_sort |
Shindo, Tetsutaro |
title |
Developing Insurance Markets : Insurance Companies and Infrastructure Investments |
title_short |
Developing Insurance Markets : Insurance Companies and Infrastructure Investments |
title_full |
Developing Insurance Markets : Insurance Companies and Infrastructure Investments |
title_fullStr |
Developing Insurance Markets : Insurance Companies and Infrastructure Investments |
title_full_unstemmed |
Developing Insurance Markets : Insurance Companies and Infrastructure Investments |
title_sort |
developing insurance markets : insurance companies and infrastructure investments |
publisher |
World Bank, Washington, DC |
publishDate |
2021 |
url |
http://documents.worldbank.org/curated/undefined/731841632205077536/Insurance-Companies-and-Infrastructure-Investments http://hdl.handle.net/10986/36355 |
_version_ |
1764485013544370176 |