Willis Towers Watson combines insurance and investment units

Willis Towers Watson has transferred its UK Insurance Investment Solutions Group (IISG) to the company’s Insurance Consulting and Technology (ICT) UK Life business.

The move which becomes effective April 1, 2018 aims to address the growing demand for bespoke investment services with enhanced integrated insurance and investment offering.

The reorganisation is designed to ensure the consultancy remains well placed to help property & casualty and life insurers optimise their investment portfolios in a "highly regulated, competitive and low-return environment", Willis said.

“Whilst ensuring the IISG retains its unique offering and close links with the Investment business, transferring to the ICT business will offer tighter integration of our insurance and investment capabilities, driving efficiencies in the service and the ability to uniquely develop Willis Towers Watson’s investment proposition for insurers,” said IISG head Keith Goodby.

The company cited "persistent external factors" behind the increase in demand for better asset allocation to raise investment yields. The regulatory developments like MIFID II and PRIIPs, it noted, are increasing the complexity of investment management for insurers. In addition, the market outlook of risks are said to be skewed to the downside over the medium term, and increased systemic market risk due to global linkage of markets through technology is leading to more volatile outcomes.

According to Willis, Solvency II and Prudent Person Principle have forced more focus on and a deeper understanding of requirements for the management of insurer’s assets and investment risk.

Marcus Bowser, sales & practice leader, UK life consulting at Willis Towers Watson, commented: “Insurers are grappling with a continued low-yield environment and shifting regulations, driving changes to their asset strategies, business models and risk appetite. While these changes have created some obstacles for insurers, they also represent an opportunity to consider how best to enhance their returns in a risk controlled and capital efficient way.”

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