Key Takeaways
- • Clearwater Analytics (NYSE: CWAN) reports that alternative investments now make up nearly one-third of US insurance industry assets, roughly $2.7 trillion, according to its "Are 'Alternatives' Still Alternative?" report.
- • The analysis combines industry-wide NAIC data with roughly 400 CWAN insurers representing $4.4 trillion in combined assets.
- • Private credit, including privately placed bonds and mortgage loans, leads the shift into alternatives, per the report.
- • CWAN data shows alternative asset operations taking 3 to 5 times longer to process, which it characterizes as a technology infrastructure gap.
- • Kirat Singh, President of Risk and Alternative Assets at CWAN, says some insurers now allocate 35% to 70-80% to privates and alternatives.
Summary
Clearwater Analytics (NYSE: CWAN) released industry research on November 12, 2025, concluding that alternative investments have moved from a fringe strategy to a core portfolio component for insurers. The company estimates alternatives now account for nearly one-third of US insurance industry assets, approximately $2.7 trillion. The report, titled "Are 'Alternatives' Still Alternative?", pairs industry-wide NAIC data with analysis of about 400 CWAN insurer clients representing $4.4 trillion in combined assets.
CWAN characterizes the shift as permanent and structural rather than cyclical. Private credit, including privately placed bonds and mortgage loans, is identified as the alternative asset class gaining the most traction. The study found wide variation among individual insurers, with alternative exposure ranging from the low single digits to well over half of some portfolios. The drivers cited are diversification, predictable yields, and liability matching.
The report's central operational finding is a technology gap. CWAN data shows three to five times longer processing times for alternative asset operations, which it attributes to legacy systems failing to keep pace with growth in these holdings. Kirat Singh, President, Risk and Alternative Assets at CWAN, said that clients are shifting capital to privates and alternatives, "some at 35% while others going as high as 70-80%," and that the operational challenge now calls for open, scalable technology infrastructure.
Matthew Vegari, Head of Research at CWAN, said the findings suggest traditional portfolio construction models require fundamental revision, with implications for asset managers, consultants, and institutional investors. He stated that allocators need to see investments "in one place, on one system." These are company-sourced findings and promotional in nature; the release is issued by CWAN, which markets its platform as the solution, and the underlying data has not been independently verified.
The release also notes that CWAN's proprietary database supports over $10 trillion in global assets across insurers, asset managers, hedge funds, banks, corporations, and governments.
CWAN characterizes the shift as permanent and structural rather than cyclical. Private credit, including privately placed bonds and mortgage loans, is identified as the alternative asset class gaining the most traction. The study found wide variation among individual insurers, with alternative exposure ranging from the low single digits to well over half of some portfolios. The drivers cited are diversification, predictable yields, and liability matching.
The report's central operational finding is a technology gap. CWAN data shows three to five times longer processing times for alternative asset operations, which it attributes to legacy systems failing to keep pace with growth in these holdings. Kirat Singh, President, Risk and Alternative Assets at CWAN, said that clients are shifting capital to privates and alternatives, "some at 35% while others going as high as 70-80%," and that the operational challenge now calls for open, scalable technology infrastructure.
Matthew Vegari, Head of Research at CWAN, said the findings suggest traditional portfolio construction models require fundamental revision, with implications for asset managers, consultants, and institutional investors. He stated that allocators need to see investments "in one place, on one system." These are company-sourced findings and promotional in nature; the release is issued by CWAN, which markets its platform as the solution, and the underlying data has not been independently verified.
The release also notes that CWAN's proprietary database supports over $10 trillion in global assets across insurers, asset managers, hedge funds, banks, corporations, and governments.
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