Europe’s insurers are becoming increasingly interested in infrastructure assets as they search for yield in the current low interest rate environment but opportunities are scarce. Cristina Mihai, Insurance, Infrastructure Investments, Low Interest Rates, Europe, Public Private Partnerships
The EU Investment Plan, which is committed to "private sector investment in infrastructure projects" does not go far enough to provide avenues of investment to insurers in a low interest rate environment, according to a survey by Insurance Europe. In the survey, conducted among more than 1,000 insurance companies across Europe, only one insurer said it had made an offer for its own share capital and that was rejected because of concerns about market risk. The paper said the most dynamic areas for investment were social infrastructure, transport and renewables but "political risk" was still an obstacle in all markets.