Inflation has remained the top concern for global insurers, even as they cautiously adjust portfolios and embrace new operating models, according to BlackRock’s 14th annual Global Insurance Report.
The survey of 463 senior investment professionals across 33 markets, representing US$23 trillion in assets under management, has found that inflation continues to dominate insurers’ macroeconomic risk radar.
In Asia-Pacific, where respondents manage more than US$7 trillion, risk appetite has stayed subdued, with only 12 per cent of insurers planning to increase overall exposure to risk in 2025.
Despite this caution, allocations to private markets have continued to rise. Nearly a third of insurers plan to lift allocations while 58 per cent expect to maintain current levels. Private credit, infrastructure and multi-alternative strategies remain the most cited opportunities.
Hiroyuki Shimizu, deputy head of Asia-Pacific and head of APAC institutional business at BlackRock, said Asia-Pacific insurers stand out for their focus on multi-alternative strategies that “offer a more efficient path to portfolio diversification across private assets”.
He added that this focus underscores their “commitment to long-term resilience and growth” amid market volatility.
The trend has been most pronounced in Asia-Pacific, where 79 per cent of insurers plan to maintain or increase their private markets exposure over the next year, and 64 per cent identify multi-alternative strategies as their top target for expansion, well ahead of peers in EMEA and North America.
Public markets, however, remain a core component of portfolios, with 73 per cent of insurers globally and 72 per cent in Asia-Pacific planning to maintain current allocations.
Within public assets, insurers favour derivatives, government bonds and municipal bonds to balance safety with flexibility in volatile conditions.
“The story of 2025 is one of caution amid volatility, but also of conviction in the long-term opportunities private markets can offer,” said Mark Erickson, global insurance strategist at BlackRock’s financial institutions group.
“Insurers are navigating the environment with discipline while many are embracing new operating models, such as hybrid solutions to access private assets, and adopting investment, risk, and AI software to strengthen their portfolios.”
Charles Hatami, global head of the financial and strategic investors group and co-head of the global partners office at BlackRock, said life insurers, in particular, are accelerating their deployment of long-term private capital.
“Their deep expertise, disciplined approach and long-term investment horizon uniquely position them to offer valuable perspectives to other institutional investors navigating similar challenges,” he said.
A defining theme of the report is the rise of hybrid and flexible operating models.
Some 87 per cent of insurers have reported changing their approach to asset management, with 69 per cent of Asia-Pacific respondents shifting toward hybrid frameworks that blend internal capabilities with external partnerships.
Capital management priorities have also evolved, with 67 per cent of insurers planning to use reinsurance sidecars, 54 per cent looking to increase third-party capital usage, and 53 per cent seeking to expand captive management capabilities.
Technology investment remains central to these transformations, with insurers prioritising AI-driven software, portfolio and risk management tools, and liability analytics.
Sustainability also continues to feature strongly for the second consecutive year. Clean energy infrastructure has topped insurers’ list of most attractive transition investment opportunities, followed by core infrastructure and green bonds – highlighting a growing commitment to align long-term returns with global decarbonisation goals.
