We offer our clients insurance coverage through a number of insurers, capable of managing risks anywhere in the world.
Insurance can be an important asset class of your portfolio. Like other asset classes, insurance provides the contract holder with cash flow under some specific circumstances. The timing and size of the cash flow are quite different from traditional asset classes, like stock and bonds. So, insurance deserves its own category and is more similar to options than stocks or bonds. Insurance is unique in a return and risk sense. Distribution of return is highly non-normal. Insurance doesn't conform to traditional asset classes. But it should be both acquired and managed according to an asset allocation for long term value and maximization of benefits.
Investors should never view insurance as a stand-alone product. In any and all cases it should be associated with some other asset class. They are most like option contracts. Options are in their own asset class — derivatives — insurance can be viewed in a similar way. If you take a whole life policy for example it has a cash value. We can dissect the whole life policy into two components — the cash value is one – it may look like a bond. The second is the insurance part, the contingent claim that will pay off. That's the derivative part. It is purchased for those things for which the likelihood of loss is low, but the economic impact - in the unlikely event of occurrence - is greater than can be reasonably absorbed.