ETF use increasing among insurance companies

ETF use increasing among insurance companies

A recent Greenwich Associates/Invesco study showed 70% of U.S. insurance companies now use ETFs. The primary reasons for using ETFs were better access to cash/liquidity management, to gain or maintain specific exposures and low cost. ETF holdings are still a small portion of insurance company portfolios.

The main reason for increased adoption is the result of a 2017 systematic value accounting ruling by National Association of Insurance Commissioners. The change helps lower financial statement volatility and meet internal risk and capital requirements.  Read more at ETF.com.