Key Takeaways
- • BlackRock's Global Insurance survey of 463 insurers across 31 markets, representing more than $24tn in investable assets, finds 76 per cent expect to increase private markets allocations over the next 12 months, while 24 per cent plan to maintain current levels.
- • Private debt is the most in-demand area, cited by 41 per cent of respondents as a target for increased allocation, and 74 per cent plan to access it through separate accounts or bespoke mandates.
- • 92 per cent of insurers allocate at least 5 per cent of their portfolios to private markets, and more than 40 per cent allocate over 15 per cent.
- • Insurers are shifting from broad-based increases toward selective deployment focused on portfolio construction, relative value and implementation within existing allocation targets.
- • 84 per cent describe their asset management approach as hybrid, and 49 per cent expect to expand their use of external asset managers over the next 12 months.
Summary
Global insurers plan to increase their allocations to private markets, with private debt showing the strongest demand, according to new research from BlackRock. The BlackRock Global Insurance survey describes private markets as "an established part" of insurers' investment strategies. Ninety-two per cent of surveyed insurers allocate at least five per cent of their investment portfolios to private markets, and more than 40 per cent allocate over 15 per cent.
The survey covered 463 insurers across 31 markets with investable assets exceeding $24tn (£17.9tn). Of these, 76 per cent expect to raise private markets allocations over the next 12 months, while 24 per cent intend to hold current levels. BlackRock noted a trend away from broad-based increases toward more selective deployment, with insurers focusing on portfolio construction, relative value and implementation within existing allocation targets.
Private debt was identified by 41 per cent of respondents as the area for increased allocation. Seventy-four per cent of global insurers plan to access private debt through separate accounts or bespoke mandates. BlackRock also highlighted the growing role of partnerships in insurers' operating models: 84 per cent of respondents described their asset management approach as hybrid, combining internal and external capabilities, and 49 per cent expect to increase their use of external asset management over the next 12 months.
Mark Erickson, global insurance strategist in BlackRock's Financial Institutions Group, said insurers are seeking partners that can do more than manage investments, combining investment, capital and technology capabilities. Charles Hatami, global head of the financial and strategic investors group and co-head of the global partners office at BlackRock, said that "strategic commitment does not mean indiscriminate buying," adding that the key question is "which assets and structures best support each insurer's income, liquidity and capital objectives."
The survey covered 463 insurers across 31 markets with investable assets exceeding $24tn (£17.9tn). Of these, 76 per cent expect to raise private markets allocations over the next 12 months, while 24 per cent intend to hold current levels. BlackRock noted a trend away from broad-based increases toward more selective deployment, with insurers focusing on portfolio construction, relative value and implementation within existing allocation targets.
Private debt was identified by 41 per cent of respondents as the area for increased allocation. Seventy-four per cent of global insurers plan to access private debt through separate accounts or bespoke mandates. BlackRock also highlighted the growing role of partnerships in insurers' operating models: 84 per cent of respondents described their asset management approach as hybrid, combining internal and external capabilities, and 49 per cent expect to increase their use of external asset management over the next 12 months.
Mark Erickson, global insurance strategist in BlackRock's Financial Institutions Group, said insurers are seeking partners that can do more than manage investments, combining investment, capital and technology capabilities. Charles Hatami, global head of the financial and strategic investors group and co-head of the global partners office at BlackRock, said that "strategic commitment does not mean indiscriminate buying," adding that the key question is "which assets and structures best support each insurer's income, liquidity and capital objectives."
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