In a sharp reversal from prior years, the world's largest investors now see inflation as the biggest threat to their portfolios.

The most fundamental concern is inflation, and some of it is because of a concern that inflation has on the balance sheet,

but more specifically, the concern is

higher inflation rates drive more monetary tightening.

If they overshoot and slow down too much

will end up with a recession.

A recession tends to be very bad for corporate credit

of which that's a very important part of the balance sheet.

I'm Allison Nathan Nathan and this is exchanges

at Goldman Sachs.

Insurance companies have long been considered a key source of

stability for financial systems. That's because insurers manage

multi-billion dollar investment portfolios, the sheer size of which can move

assets and markets. Today we'll get a look at what's on the minds of this influential investor

base. To do that, I'm sitting down with Mike Siegel, Globalhead of the Insurance Asset

Management and Liquidity Solutions businesses in Goldman Sachs Asset Management.

Mike, welcome back to the program.

Allison, great to see you and I'm really thrilled to be here.

It's always great to see you, Mike, and catch up with what's going on in the world of insurance.

There's so much going on now and I think it's a particularly interesting moment given the volatility in the markets that insurers have exposure to.

But before we get into that first just remind us why this investor base insurers matters so much.

Well, Allison, globally the industry represents over 26 trillion dollars worth of assets that need to be invested. It's one of the two largest

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