Private capital in insurance 2.0: Building the flywheel
By Andrew Reich and Ramnath Balasubramanian · McKinsey & Company · 2024 · CFE201-112-27
Study guide: Exam CFE-201
A McKinsey article of June 2024 on why the relationship between insurers and private capital has strengthened even as investment management is wary of "virtuous flywheel" strategies. It says private-capital firms and insurers have built a symbiotic relationship over the past decade, with tie-ups giving private-capital firms permanent capital and giving insurers capital relief or distinctive investment-management capabilities.
On the syllabus
- Exam CFE-201 — outcomes 1a, 1c.
The current landscape
The virtuous flywheel
Opportunities and risks
Building the flywheel
- Selling insurance at scale
- Differentiated investment management
- Capital management
Where to go from here
- Integrated models (with distinctiveness in all three flywheel elements)
- More 'unbundled' models (with a focus on distinctiveness in one or two flywheel elements)
Making progress on the journey to value creation
Sources
- Private capital in insurance 2.0: Building the flywheel (McKinsey & Company, 26 June 2024) — the document: title, authors, date, opening paragraphs and section headings; read through McKinsey's Brazil site, which serves the same article, because mckinsey.com refused automated fetches (mckinsey.com.br copy)
- CFE 201 Syllabus, Mar 2027/Jul 2027 (SOA) — the reading (CFE201-112-27, printed there "Building a Flywheel") and its learning outcomes
- CFE 201 Introductory Study Note, March 2027 (SOA) — the study-note code CFE201-112-27 and its title (printed there "Building the Flywheel")