(31)A well-functioning securitisation market provides additional funding sources to capital markets, thus improving the funding capacity of the real economy and contributing to delivering on the Savings and Investments Union. It also provides alternative investment opportunities to insurance and reinsurance undertakings, which need to diversify their portfolios to boost returns and reduce idiosyncratic risk. As institutional investors, insurance and reinsurance undertakings should therefore be fully integrated into the Union’s securitisation market.