The implementation of Solvency II will likely alter Insurers’ portfolios
As these changes may be complicated, Transition Managers can be utilised to help control the costs and risks that Insurers will face. In a roundtable discussion moderated by Sarah Brakebill, Client Management, participants Mark Dwyer, Mellon Transition Management and Sam Lundqvist, ConvergEx, discuss the value of transition and beta management for insurers. Sam Lundqvist explains, “Transition Managers make the risk and cost transparent. This is an important ‘value-add’ that only a specialist Transition Manager can provide. It is clearly important to understand the cost and the risk of any significant portfolio changes before they are executed.” The panellists explore the benefits of using Transition Managers to help with asset allocation changes, or an inter-asset change, to diversify the asset allocation mix. They discuss how Transition Managers can help insurers deal with market volatility and meet the demands of Solvency II.