ECB working paper: Insurers’ investment strategies: pro- or countercyclical?

The ECB has published a working paper entitled “Insurers’ investment strategies: pro- or countercyclical?”.

ECB Working Paper – Insurers investment strategies pro- or countercyclical.pdf

The paper highlights that insurers’ procyclicality is linked to changes in risk premia. In terms of policy implications, this could matter for the potential development of countercyclical policy instruments targeting risk-premia volatility.