A term we hear thrown around constantly.
To some, it means one specific role/job function, usually client-facing investment professionals who advise insurers on topics such as SAA, private vs public markets strategy, and regulatory topics.
To others, insurance solutions means a whole business division managing (or advising on) assets for insurers, with specialist teams spanning portfolio management, structuring/origination, quant research, and client advisory/solutions sales.
Here is the definition we use at Laz Partners:
Our definition
Insurance solutions is a term for any investment function, or an entire group of teams, whose work is shaped by insurance capital treatment: helping insurers optimise their returns and balance sheets in the most capital-efficient way possible.
Why is the space so specialised?
At Laz Partners, we think about the market along 4 key axes, each forming part of the expertise a candidate holds.
- Regulatory Framework: Solvency II MA (UK) or Standard Formula (Continental Europe), US NAIC, Bermuda, Asia RBC. A PM running a credit portfolio under Solvency II MA is a different profile from a credit PM running a Japanese insurance balance sheet (for example)
- Asset class: Public credit, private credit, CLOs, ABS, Infra Debt (to name a few), Real Estate Debt (+ more)
- Function: Structuring, portfolio management, quant, client advisory/solutions, credit ratings/research (+many more)
- Type of insurer: Life, non-life/P&C, Reinsurers (+more)
Most people sit in just a few cells on that grid.
A few if the reasons why insurance solutions is such a hot growth area
- Rates have moved and insurers can earn a proper spread again.
- Japan's new solvency regime is pushing life insurers to reinsure large blocks, mostly to Bermuda reinsurers backed by alt managers.
- The EU cuts capital charges on senior securitisations from Jan 2027, bringing more European balance sheet flows into CLOs.
- Alt managers keep acquiring insurers to bring assets in-house
- Credit managers are making specialist insurance solutions hires (eg. structurers) to raise more capital from insurers, as insurers have huge sums to allocate.
On comp
Some of the highest numbers we see across the entire market, due to the specialist and technical nature of most candidates operating in the space. Those who have expertise across multiple regulatory frameworks, combined with structuring backgrounds, are typically paid the highest. The sell-side and alt managers comfortably lead on comp.
These are some top-level views only. Far from everything we know, and hopefully at least value-added to people in our network.
