Focus: Swiss Re collaborates with the World Bank on infrastructure investment strategies

According to the OECD, less than 1% of the USD 80 trillion or so managed by institutional investors (eg re/insurance companies and sovereign wealth funds) is earmarked for infrastructure investment. However, emerging markets and developing economies, especially, are facing a massive gap in infrastructure investment: it is estimated that an additional USD 1 trillion to USD 1.5 trillion will be required to meet demand until 2020 alone.

Construction site of a highway (photo)

To unlock the potential of infrastructure investment, the World Bank has launched its Global Infrastructure Facility (GIF), a partnership of public and private sector entities. We took part in the GIF’s launch event in 2014 to announce our collaboration as an advisor. Swiss Re and other re/insurers can play a crucial role in promoting infrastructure investment: not only is our industry one of the largest institutional and long-term investors, it also offers the risk transfer solutions needed to protect investments.

To attract more long-term investment, however, infrastructure needs to become established as a standardised and tradable asset class. In our cooperation with the GIF, we focus both on infrastructure as an asset class and effective risk transfer solutions. > Programs > Global Infrastructure Facility