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 Europe. It identified a "serious lack" of pipeline projects, and said that the public support offered by the European Fund for Strategic Investment, it runs the risk of excluding private investment in other areas. 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.