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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Main Authors:	Shindo, Tetsutaro, Stewart, Fiona
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	DISASTER RISK FINANCE INSURANCE INFRASTRUCTURE INVESTMENT FINANCIAL REGULATION
Online Access:	http://documents.worldbank.org/curated/undefined/731841632205077536/Insurance-Companies-and-Infrastructure-Investments http://hdl.handle.net/10986/36355

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recordtype	oai_dc
spelling	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
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	DISASTER RISK FINANCE INSURANCE INFRASTRUCTURE INVESTMENT FINANCIAL REGULATION
spellingShingle	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

Developing Insurance Markets : Insurance Companies and Infrastructure Investments

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