It could have been so much worse will probably be the prevailing reaction among insurance company and pension fund investment bosses as a turbulent year draws to its close.

UK insurers and pension funds trying to shape their approach to sustainability in their underwriting and investment portfolios face a potential regulatory blind spot, according to a new industry report.

A gentle wind of change is rustling the leaves in the cautious world of UK pension fund investment as it rises to the challenge of channelling pension fund assets into domestic infrastructure and high-growth sectors. The government has pointed with increasing urgency to countries such as Canada and Australia that have demonstrated stronger models of institutional collaboration, particularly in transport, energy, and technology projects.

European regulators have urged financial institutions to increase vigilance and maintain adequate provisions in today’s tense and unpredictable geopolitical environment and growing fragmentation of the global economy.