Asian insurers' foreign property allocation tipped to rise
Buoyed by asset growth, but impeded by low yields and a lack of suitable assets at home, Asian insurers are turning their focus to overseas property, despite various challenges.
Spurred by relaxed regulations, rapid industry growth and the continuing search for yield, Asian insurers are forecast to boost investment in real estate to $205 billion by 2018 from $130 billion last year.
Some $30 billion of that increase could be into overseas real estate, said property services firm CBRE in a recent report.
Their exposure is currently relatively low. Asian insurers’ allocation to real estate including direct and indirect exposure was 2% as of 2013, compared …
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