ETF Strategies for Insurers
Agility in volatility
Built to capture the moment
Actively traded, iShares ETFs are a top choice for investors during market volatility, delivering superior quality, deep liquidity and access to an extensive range of products.
Seize control in uncertain markets
Express tactical views
Build granular and nimble portfolios across asset classes, geographies, sectors and/or maturities
Unlocking operational efficiency
ETFs offer operational simplicity with instant, easy and cost-effective exposure to a portfolio of securities
Balance Yield with Liquidity
Access competitive returns while maintaining flexibility to pivot as markets shift
Risk On, Risk Off
ETFs provide price discovery and immediacy of risk transfer in volatile markets
The big shift
With over 30 years of history, ETFs have become one of the most transformative financial innovations, offering precise, transparent exposures with low cost and intraday liquidity.
They are the go-to vehicle for transferring risk, especially during extreme market volatility, as seen during the global financial crisis, the coronavirus pandemic, and more recently, the trade negotiations.
The ETF industry has grown significantly from US$1.1T in 2009 to over US$14.6T today. Similarly, the insurance industry has seen increased ETF adoption.
How insurers adopt iShares ETF strategies
Case #1 Express Tactical Views: Building Granular Solutions for TAA
Capitalize on market shifts with precision.Discover how a leading APAC insurer enhanced portfolio agility using iShares ETFs to express active views—without straying from their MSCI ACWI benchmark.
In today’s volatile markets, speed and flexibility are critical. This insurer needed a way to tactically tilt exposures across regions and single countries while maintaining tight tracking error. The solution? A building block approach using ETFs to unlock nimble, cost-efficient allocations.
What you’ll learn in the full case study:
- How the insurer constructed granular portfolios drawing from our 1,600+ iShares ETFs
- The strategy behind optimizing for tracking error and total expense ratio
- Why flexibility in ETF selection enabled alpha-seeking tilts across market regimes
Case #2 Unlocking Operational Efficiency: Enhance Portfolio Efficiency
Streamline your investment operations with a single trade.Discover how insurers across Asia are simplifying portfolio construction and reducing time to market by replacing hundreds of single-line equity trades with iShares ETFs.
Managing portfolios with individual securities can be resource-intensive and slow. In this case study, several insurers transitioned from manually managing Asia ex Japan equity exposures to using ETFs—gaining speed, scale, and simplicity.
What you’ll learn in the full case study:
- How insurers reduced operational complexity by replacing ~1,000 securities with a single ETF
- The benefits of leveraging BlackRock’s scale and portfolio management expertise
- Why ETFs are ideal for strategic positioning with faster execution and lower costs
Case #3 Manage SAA Changes with Confidence: Efficient Transitions Using ETFs
Stay invested, stay agile.Discover how leading Asian insurers are using iShares ETFs to navigate strategic asset allocation shifts and manager transitions—without sacrificing exposure or efficiency.
In volatile markets, sourcing individual bonds can be slow, costly, and operationally intensive. This case study reveals how insurers managing against the JACI benchmark used ETFs as a liquidity sleeve to remain fully invested, reduce cash drag, and transition portfolios with speed and precision.
What you’ll learn in the full case study:
- How insurers used ETFs to maintain benchmark-aligned exposure during periods of illiquidity
- The role of ETFs in reducing operational friction and enabling same-day execution
- How ETFs supported flexible, cost-effective transitions between fixed income strategies
Case #4 Liquidity Sleeve: Maintain Exposure Without Sacrificing Flexibility
Stay liquid. Stay aligned.Explore how a leading insurer built a liquidity sleeve using iShares ETFs to manage market exposure, support surplus, and reduce trading friction—without compromising on yield or agility.
In today’s fixed income environment, traditional liquidity solutions like cash or T-bills can lead to costly cash drag. This case study shows how insurers are using ETFs to mirror their asset allocation, enabling swift re-risking and de-risking decisions in response to market shifts and regulatory demands.
What you’ll learn in the full case study:
- How ETFs helped an insurer dynamically manage equity and fixed income allocations
- The role of ETFs in reducing execution time and trading costs
- Why iShares fixed income ETFs are ideal for building scalable, liquid beta sleeves
Case #5 Efficient Risk Transfer: Navigate Volatility with Confidence
Execute with speed. Manage risk with precision.Learn how a leading insurer used iShares ETFs to gain high yield exposure during a period of extreme market volatility—achieving price transparency, liquidity, and execution efficiency in a single day.
In stressed markets, traditional bond trading can be slow, opaque, and costly. This case study shows how ETFs provided a powerful alternative—enabling swift, diversified access to high yield credit while minimizing market impact.
What you’ll learn in the full case study:
- How ETFs supported efficient risk transfer during the volatile 2022 high yield market
- The role of ETFs in providing real-time price discovery and daily liquidity
- Why ETFs are becoming essential tools for insurers navigating fixed income transitions
Case #6 Liquidity Solutions for Alternatives: Minimize Cash Drag, Maximize Efficiency
Bridge the gap between capital and deployment.See how a leading APAC insurer used iShares ETFs to manage idle capital during a multi-year private market allocation—reducing cash drag while maintaining liquidity and alignment with their strategic asset allocation.
Deploying capital into alternatives takes time. Meanwhile, holding large cash reserves can erode performance. This case study shows how ETFs provided a low-touch, cost-efficient solution to keep the portfolio working—without compromising on flexibility or oversight.
What you’ll learn in the full case study:
- How the insurer mitigated ~0.5% annual cash drag using a bespoke ETF basket
- Why ETFs offered the right balance of daily liquidity, low cost, and strategic alignment
- How this approach freed up resources to focus on private market restructuring
The iShares difference
1st
Innovation
iShares has been honored as the Best ETF Manager - Global at the 2025 Insurance Asia News Asset Management Awards
+550
Quality
iShares has been recognized by Morningstar with over 550 Gold & Silver-rated ETFs - twice our next competitor.3
$204B
Access
In 2023, our clients entrusted us with over US$186 B in new ETF assets and US$18 B in index mutual fund assets, more than any other firm.4
+$630M
Value
Since 2015, iShares has helped save investors over US$630 M through fee reductions.5