Insurers play an important role in supplying the funding needs of governments, businesses and households via significant investments that they hold in government, corporate and covered bonds (which represent 60% of the €8.4trn of assets under management), as well as in other assets such as public equity (15% of total assets), securitisations, infrastructure, venture capital, direct loans, etc.

While insurers can help support economic growth in Europe through these investments, policymakers should be aware that insurers’ investment in long-term assets is a natural consequence of their liabilities, ie investing in assets is not an aim per se, but a consequence of insurers’ primary role of providing protection and managing policyholders’ savings.