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Many U.S. insurers plan to take on more investment risk in 2024, saying the risks associated with using artificial intelligence (AI) in the investment process are outweighed by the technology’s potential benefits.
A survey of 300 investment decision makers by Conning, an investment firm serving the insurance industry, found that 80% are optimistic about the investment environment this year and 62% intend to take on more investment risk. It is said that The results were slightly down from last year, when 64% said they expected their investment risk tolerance to improve.
“Years of historically low interest rates have left insurers unfamiliar with ways to improve portfolio yields,” Matt Riley, head of insurance solutions at Conning and co-author of the research, said in a statement. We needed to look at asset categories.” “Rising interest rates have made these traditional investments attractive again. Many insurance companies appear poised to take advantage of these yields, while real estate, private credit, private equity and more We also continue to work on adding non-traditional assets.”
The portfolio’s top concerns included inflation, the domestic political environment, and the impact of monetary policy. The latest survey added domestic political environment and AI as concerns.
Despite several concerns regarding the use of AI and machine learning in the investment process (e.g. ethical considerations, lack of human oversight, unanticipated market changes, cybersecurity, etc.), three out of four respondents You indicated that you are currently using or experimenting with AI/machine learning. Use for investment.
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