Insurers, when they decide to outsource the job of investment manager to a third party, rely less on a structured selection process and more on their trust and comfort level with the outsource operation, a new survey states.
David Holmes, partner at strategic consultant Eager, Davis & Holmes, who conducted the survey, said insurers generally do not score prospective third-party investment managers on predefined criteria; do not use a manager evaluation database to evaluate prospective investment managers; and do not use a third-party consultant to evaluate investment managers' products and organizational stability and depth.
Speaking to NU Online, Mr. Holmes said it is important for insurers to get "under the hood" and gain a good understanding of the philosophy, process and experience prospective investment managers have in managing insurance portfolios.
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