Why Insurers Use an Investment Consultant

While every insurance company’s investment program has specific attributes and needs, an investment consultant can help improve their process in various areas. There are several important reasons an insurance company may utilize an investment consultant as part of their investment program, including:

No Chief Investment Officer on Staff

o   Investment Consultants can act as a cost-effective, external CIO
o   Investment expertise and knowledge can be outsourced


Assistance in Evaluating and Selecting a Manager

o   Ensuring the current manager is adhering to the client’s goals & objectives
o   Evaluation of the manager’s performance
o   Guidance in selecting the right investment manager
o   Assistance in final contract and fee negotiations


Strengthening of the Overall Investment Program/Strategy

o   Advisement on the strengths and weakness of the investment process
o   Ensure the ‘best practices’ are being implemented
o   Help in understanding the ‘whys’ behind performance
o   Improving bottom line from allocation and sound risk management


SAA believes that several key attributes are very important for clients to consider when selecting an investment consulting partner. In general, the decision revolves around the experience and judgement brought to the table by the senior professionals with who you will be working with.


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