“Investments in Ibip products offer opportunities to small savers and guarantees for pension savings”. As Stefano de Polis, general secretary ofIvass, at the Mondo Institutional Forum entitled: “The asset allocation of insurance companies: what evolution? Regulatory strategies and constraints in the new market context“. In this important meeting, promoted by the Mondo Institutional Forum, crucial issues regarding the investments of insurance companies and their evolution were addressed, with particular attention to the challenges and opportunities in the current context.
In his speech, Dr. Stefano De Polis highlighted the importance of life investment products, through which savers can direct significant savings flows towards the financial markets. In particular, he underlined the need to actively support the transition towards a green and digital economy.
The importance of Ibip products
The Secretary General highlighted the crucial role of insurance-based products Ibip investments in the current financial landscape. These tools not only offer risk diversification, but also provide financial and biometric guarantees, as they often serve as retirement savings vehicles.
De Polis underlined that in Italy investments in Ibip products represent around 5% of GDP, compared to the average figure for the European Union which stands at around 7-8%. This highlights the growth potential and importance of these tools to enrich the asset management ecosystem.
Sustainability and performance
A focal point was the debate on sustainability and the customer value of insurance products. De Polis explored how more complex products tend to be expensive relative to expected net returns, raising the issue of the importance of a balance between costs and benefits for investors. Emphasis was placed on the need to strengthen the Product Oversight and Governance processes (Pog) to ensure a sustainable and beneficial approach for subscribers.
Sustainable product market
Another key point of the intervention was the growing market for sustainable insurance products. De Polis referred to Ivass' recent annual monitoring of risks from natural disasters and sustainability. The survey highlighted that almost all Italian insurance companies have set eco-sustainability objectives for their investment portfolios. “In general it emerged that the activities of ESG cataloging of assets and review of the investment policies of Italian companies are overall advanced, especially in medium-large sized companies,” said De Polis.
ESG distribution and future challenges
Finally, de Polis addressed the distribution of Esg. products (Environmental, social, governance) in the insurance market. Although companies have updated their networks on sustainability regulations, Demand and Needs questionnaires sometimes fail to accurately capture customer preferences regarding sustainability.
“The analysis did not reveal any obvious cases of greenwashing on the product side but it is clear that the quality of the offer is destined to grow with the strengthening of investment selection systems and the availability and quality of data on eco-sustainable investments, in particular those eligible on the basis of key performance indicators of the European Taxonomy,” continued the Secretary General.
De Polis underlined the importance of improving investment selection systems and ensuring greater transparency and quality of data relating to eco-sustainable investments.
In conclusion, Stefano de Polis underlined the key role of insurance in the development of a resilient economy climate changes. He highlighted the importance of solid processes for defining and governing insurance products, with particular reference to ESG characteristics.
