Counteracting the challenge of low interest rates - insurance funds are tapping into alternative assets.
In a low interest rate market environment, insurance capital is seeking more returns through exploring alternative assets, with particular attention being paid to asset-backed plans and REITs projects by insurance funds. According to incomplete statistics from reporters, as of July 17th, this year, the China Insurance Asset Registration and Trading System has registered more than 40 asset-backed plans with a total size exceeding 200 billion yuan, a year-on-year increase of about 50%; in terms of REITs investments, more than 40 insurance institutions have participated as strategic investors in over 10 REITs placements, compared to only 10 insurance institutions participating in 7 REITs placements during the same period last year. It is evident that insurance funds are accelerating the exploration of alternative asset investment opportunities.
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