The class of securitizations has been broadened to include “loan securitizations” which, along with others, can admit total investments of up to 5 per cent of the technical provisions. We shall see in the months ahead whether or not insurance companies show significant interest in this new business.
From our occasional contacts to date, some interest has emerged in the funding of major infrastructure projects but little in lending to SMEs. Given present cyclical conditions, insurance companies are certainly driven to seek higher yields than those prevailing in traditional investment classes, but they are well aware of the cost of equipping themselves to take on new and very risky tasks.