According to a new report, insurance companies based in the US are very interested in investing in cryptocurrency. This report was put out by Goldman Sachs after surveying 328 CF and CIOs about their company’s portfolio and asset allocations. According to the investment giant, about 11% of US insurers said that they either invested or were interested in investing in crypto.
Mike Siegel, Head of Insurance Asset Management, said that he was surprised at the results of the survey. According to him, he though there wouldn’t be any answers from the companies. It was good to know that at least 6% of the respondents indicated that they invested and are even considering investing. Insurance companies in Asia were the most interested group and Europeans came in at just 1%.
Cryptocurrencies were ranked 5th in the asset class and insurers expected that they would get the highest returns over the next year. 2% of insurers indicated that they have crypto assets in their portfolio already and this is a notable fact.
Siegel said that he had followed up on this interest with other questions to get an insight into the motivation to buy. The answers indicated that companies were interested in the market and crypto related infrastructure. If crypto is adopted widely and becomes a currency which can be easily translated, they will buy in so that they can sell policies and take payments.
Despite the rising interest, there are many who are still negative about crypto investments. 16% of those surveyed said that it was not an asset they wanted to include as returns look dismal for the next year. Most are waiting for the volatility to subside and the crypto market to mature. Insurance companies haven’t entirely dismissed crypto as a means of investment.