The AltKuznets Insurance-leveraged Sustainability Strategy

The AltKuznets Insurance-leveraged Sustainability Strategy

 

Prasad Rao, PhD, Director, 

https://altkuznetsadvisors.com

 

Sustainability, in its various forms – Social, Political and Environmental, has an indelible impression on the society and the markets. Sustainability is also fundamental to replication of the society in to larger contexts. Whereas Sustainability is quantified in various metrices and indices, the same is reflected in Capital markets in the form of Yields, Returns and Inflation. Specifically, and whereas Returns in Equity are oftentimes correlated negatively, Inflation, both monetary and at the Bullion, are symptomatic of incipient or cumulative unsustainability. AltKuznets has, in its earlier Business proposals, outlined how Taxes – Personal and Capital Gains, as well as Personal Next Status, could be leveraged to increment Precinct and extra-Precinct Sustainability. Here, we broach a strategy to leverage Personal Life Insurance to increment Sustainability.

Life Insurance, a discretion of the Rich and upwardly mobile in the century earlier, has since turned a necessity in the modern Nominal economy characterized by a myriad diffused risk that originate in Public Infrastructural conveniences and Private LQ pursuits. Life Insurance has since diversified in its offering from the plain vanilla policy to complex Annuity and Endowment strategies that are tailored specifically to the each individual and his or her personal context. As the per-capita economy expands, Life Insurance has turned from an essential Risk-attenuating strategy to something that is, in part, a family asset – a reassurance of a soft landing in emergencies. For these reasons, Insurance Policies have since turned a Health and a Risk Diligence, and add to a Policy-holder’s sense of security, if not social standing.

Capital markets are the source of dynamism and growth in the economy. They are also engendering of Volatility due their play on the uncertain future as expressed thru multitudes of investors with different short-term and longer stakes. Such Volatility episodes are common to Equity markets that capitalize their stream of expected Revenues in to the PE. These Volatility episodes are fortuitous to small investors and traders, but represent a significant concern to long-liened Equity investors. They are a particular concern for Equity-oriented Wealth funds and their Wealthy Subscribers, who, due their size and inter-generational tenure of investments, suffer the prospect of unwittingly funding an upstart or fresh recalcitrant in the market with each Volatility episode. Left unresolved, the disincentive to participate in the Capital market obstructs investments in long-run Sustainability, and forces the society and the economy to abort in to a perpetually short-run, unsustainable state characterized by falling economic growth, employment, income and wages. Concomitantly, an unsustainable economy inflates Gold to such extent that they cut in to, and erode returns to long-term Equity investing, thus and yet again reversing Sustainability incentives. Insurance firms that operate a tenure-differentiated Bond portfolio find their spreads shrinking in times such Volatility, and prefer the Short to Long Bonds, undercutting many a Sustainability investment. These impacts on Sustainability cumulate across sources and over time to reduce the state of the Society, the economy, even the FX.

AltKuznets perceives an opportunity in leveraging the expanding reach and prevalence of Life Insurance Policies to add to Precinct Public Sustainability. Realizing the potent threat to Sustainability from Capital markets, and the potential gain from leveraging the numeracy of economic agents as represented in its Life-insured citizens, AltKuznets proposes a financial market strategy that re-aligns incentives and induces an Insurance-leveraged Sustainability revolution. Our Capital Market Strategy operates across Wealth Funds, the Bond Coterie, Equity markets, Sustainability Biz and the Bullion, and obtains a pareto common to all market sections. It offers Bond market-manipulated Sustainability Dollops that are issued the many Life-insured as rebates calibrated to their Sustainability purchases and records. These Outcomes potentially obtain a sustainable future society that obtain Policy holders a ‘Daphne Axial Health Social Offer’ as well. The prospect of larger Policy rebates over time that add to Personal Disposable Income, and the Health Social Offer would induce significant participation from the Insured public. Consequent such incentives, the Insured public would pro-actively seek and purchase Sustainability Certificates, thus obtaining a larger Sustainability outcome when acting on their personal incentives.

AltKuznets plans to twin its ‘Inter-life Wealth Fund strategy’ to this ‘Within-life LYF Insurance Strategy’ proposed here. We intend to incorporate an Insurance-leveraged Sustainability Consultancy firm, and invite interests from the Public, Multi-lateral Organizations and Private Investors.

Register your Interest here!