Core Viewpoint - The insurance industry is increasingly concentrating its investments in high dividend yield assets, particularly in the banking and public utility sectors, reflecting a market-driven strategy aligned with the industry's risk-averse investment logic [1] Group 1: Current Trends in Insurance Investment - In 2023, insurance institutions have made 21 stake acquisitions, surpassing the total of 20 from the previous year [1] - The focus on high dividend yield stocks is consistent with the overall holding style of insurance funds in the stock market [1] Group 2: Challenges of Current Investment Strategy - The current trend of insurance funds clustering around high dividend assets is a passive choice under multiple pressures, including declining interest rates and the need to cover liability costs [2] - There are three main concerns with this strategy: high opportunity costs from missing growth in emerging sectors, the potential for high dividend yields to decrease over time, and the risk of concentrated investments leading to systemic risks [2] Group 3: Recommendations for Asset Allocation - Insurance funds should seek to identify and allocate more resources to high-growth sectors to achieve better long-term returns [3] - There is a need for strategic alignment between investments and core business areas, particularly in light of demographic trends such as aging populations, which can create synergies in sectors like healthcare and pensions [3] Group 4: Importance of Investment Capability - Enhancing investment capabilities is crucial for insurance companies, especially given the rapid decline in fixed-income asset yields and the pressure from long-duration liabilities [4] - Regulatory bodies have introduced policies to support insurance institutions in improving their investment capabilities, including increasing equity asset allocation limits [4] - The shift from a defensive to a proactive investment approach is essential for the insurance sector to contribute effectively to capital market health and support the real economy [4]