In February 2020, S&P Dow Jones Indices and the Association of Mexican Insurance Companies (AMIS) conducted our second annual survey of insurance investment officers in Mexico about the state of the local insurance industry.
The objective of the annual survey is to better understand how Mexican insurers invest and allocate their excess capital and how they view issues such as regulation, passive strategies, and the implementation of environmental, social, and governance (ESG) investment criteria. With each annual survey, it is our aim to reflect the current state of the insurance investment landscape from the perspective of the investment decisionmakers.
We administered the survey between Feb. 4 and Feb. 28, 2020, prior to the aggressive spread of COVID-19 in North America and the declaration of the virus as a global pandemic by the World Health Organization. As such, the coronavirus and its potential implications for the financial markets may not have been as top of mind for respondents as they likely would be today. Answers to questions regarding expected returns, adjustments in allocations, concerns, and economic projections represent the respondents' perspectives pre-crisis, under comparatively "normal" market conditions. This report summarizes respondents' perspectives on the following themes:
- Investments and asset allocation, with a focus on excess capital;
- Sensitivity to and potential impacts of regulation;
- The implementation of ESG criteria within the investment process;
- Indexing and the use of passive strategies and instruments; and
- 2020 economic indicators.
