A Risk Pool's Asset Allocation Considerations: A Global / Technology Approach?
Tess Monaghan has been the pool’s associate executive director for two years and is on track to assume the executive directorship within the next eight years. Financial results for the pool have remained strong with a continuing focus on conservative management and actuarial practices. Additionally, improved information systems and predictive analytics were allowing the pool to become more adept at pricing risk, managing claims, and identifying emerging liability trends.
Recently, Tess has been considering and learning more about “blockchain” technologies and investment strategies involving “smart tokens” which would be programmed using artificial intelligence to preserve some investment strategy or “state” even as market fluctuates.
While Tess did not outright dismiss the idea, she wanted to approach the Board/Staff/Advisors to review broader global issues and how the investment portfolio might be better positioned to benefit from emerging global trends and to hedge against emerging global threats.