Kathmandu. Insurance companies around the world are adapting to volatile markets and showing interest in private markets and new operating models.
This was revealed in BlackRock’s 14th annual global insurance report. “Inflation is the biggest concern for insurance companies around the world,” the report said, adding that 63% of insurance companies cited it as their biggest risk. ’
The report, which surveyed 463 senior investment professionals across 33 markets with $23 trillion in assets under management, found that only 12% of insurance companies plan to increase their overall investment risk in 2025. However, 30% of companies expect to grow in private markets, while 58% plan to maintain current levels.
Private loans, infrastructure and multivariate strategies are the most popular opportunities in the global insurance market. “Public markets remain at the heart of their portfolios,” the report said, adding that 73 per cent of insurance companies have kept their business promotions unchanged and 21 per cent are increasing their growth. ’
One of the key themes for 2025 is the shift towards more flexible operating models. About 85% of insurance companies are adopting hybrid wealth management structures that combine internal expertise with external partnerships.
Technology is playing an increasing role, and most respondents are investing in AI-powered software for portfolios, risk and analysis tools, the report said. “Capital management is another major area. “Over the next 12 months, 67 percent of insurers plan to use reinsurance sidecars,” the report said, adding that 54 percent of companies expect to expand third-party capital use and 53 percent plan to strengthen captive capabilities. ’
Insurance companies are also maintaining their sustainability goals. Clean energy infrastructure remains the top investment theme for the second year in a row. This was cited by 55% of respondents. This is followed by core infrastructure (51%) and green bonds (38%).
According to Mark Ericsson, global insurance strategist at BlackRock, insurance companies are facing volatility with discipline as they look for long-term opportunities in private markets.
