PORT OF SPAIN, Trinidad - Many an insurance company fancies itself as being both an insurer (that is, a risk manager) and an investment manager of sorts. The main reason for this tendency is that they use the pre-paid portion of insurance premiums (both short-term and long-term) to invest. In some aggressive cases, they price their products very competitively and hope to fill the underwriting gap (loss) by delivering high investment returns. For this strategy to work, the public must have a high level of confidence in the firm; this would tend to ensure a steady increase in annual premium income. Needless to say, their investments must perform at above-average levels on a consistent basis; a tall task even in the best of times! A more recent and less risky development is insurer’s tendency to sponsor and manage a variety of collective investment schemes; even if these mutual fund products produce mediocre results, the sponsors, which are often subsidiaries, are usually assured of a steady stream of fee income.