Insurers are bracing for a year of more uncertainty, with inflation again cited as one of the main macroeconomic risks, according to BlackRock’s (NYSE:BLK) Global Insurance Report. The report has surveyed 463 senior investment professionals across 33 markets—representing around $23 trillion in assets under management—shows a sector adapting “with caution, but also seizing opportunities in public and private markets.”
As risk appetite remains fairly low – only 12% of insurers intend to increase their investment risk exposure in 2025 – allocations to private markets continue to rise.
Nearly a third (30%) of insurers now reportedly expect to “increase private allocations with 58% intending to maintain their current exposure. 79% of respondents expect their private markets exposure to change by 1 to 5%, 13% anticipate a change between 6 and 9%, and 1% expect a change of 10% or more over the next 12 months, influenced by market movements and asset allocation over the next 12 months, signaling the continued structural shift toward private assets that has persisted across rate cycles.”
Private credit, infrastructure, and multi-alternative strategies “remain the most cited opportunities.”
Meanwhile, public markets remain foundational “to portfolios: 73% of insurers plan to maintain their current allocations and 21% plan to increase them.”
As the report indicates, insurers are focused on navigating market volatility, and on positioning their portfolios for “long-term competitiveness.”
Many are rethinking their investment strategies and operating models. Private credit, infrastructure and technology “continue to serve as useful tools to support insurers’ strategic initiatives.”
A key feature of this report is the shift toward flexible operating models. As the competitive and market dynamics evolve, insurers also appear to be adapting.
Regarding their asset management operating model, “87% of insurers are changing their approach.” Instead of only relying on their in-house capabilities, many are adopting hybrid models that bring together their internal expertise with external partners, supported by investments in tech.
Additionally, they’ve noticed an emphasis on capital management across all types of insurers. Over the next year, two-thirds or 67% now anticipate utilizing reinsurance sidecars, “54% expect to increase their use of third-party capital, and 53% plan to expand their captive management capabilities.”
This focus on capital management is said to be driven by insurers’ need to diversify balance sheet income via fee-based revenue, “optimize balance sheets and capital structures, differentiate asset mixes via sidecars, and access non-dilutive sources of capital.”
Insurers also remain committed to their “long-term sustainable and transition investing goals.” For the second year in a row, insurers most “commonly cited clean energy infrastructure (55%) as the most attractive opportunity for sustainable and transition investing, followed by core infrastructure (51%) and green bonds (38%).”
The BlackRock Global Insurance Survey offers insight into the thinking and plans of the insurance industry via independently conducted interviews of senior insurance execs.
This year’s survey conducted in July – Sept 2025 includes the views of 463 senior industry execs in 33 markets with the “following regional distribution: 37% from EMEA, 29% from North America, 25% from Asia-Pacific, and 9% from Latin America.”
Taken together these firms reportedly represent investable assets of appr. $ 23 trillion. The associated report complements the international findings with regional results, comments from industry peers and key insights from BlackRock professionals.