According to a study cited in State Street’s ‘Vision 2007’ paper on the global insurance industry, approximately 69% of insurance firms in 2006 outsourced a portion of their general account investments to unaffiliated asset management companies. In total, the amount outsourced in 2006 was pegged at US$805 billion.
But this figure is expected to increase by an additional US$1 trillion by 2011, according to State Street’s report.
“Recent activity…suggests that some companies are actively searching for arrangements that encompass the outsourcing of 100% of an insurer’s general account investment management and asset servicing tasks — such as insurance accounting and reporting services — to a single organization,” the report says. “This looks to be the beginning of a ‘total lift-out solution’ trend in insurance company outsourcing.”

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