A new survey by Blackrock reveals that more than 40% of global insurers are now allocating over 15% of their investment portfolio to private markets, with 76% planning further increases.
Insurers’ fears of recession have nearly halved, while more than three quarters plan to increase allocations to private markets further, according to BlackRock’s 15th annual survey of insurers globally. The survey includes perspectives of 463 insurers across 31 markets representing investable assets of more than $24tn. APAC insurers surveyed represent 25% of global respondents, managing over $7tn.
In an increasingly complex global investment environment, inflation risk remains the most cited macro concern for insurers (62%) – consistent from 2025. However, 61% of insurers globally expect a soft landing in the next year (24% see no landing; 9% expect stagflation conditions). While the majority expect a soft landing, the findings show regional disparities (75% in EMEA expect a soft landing, 63% in North America, 47% in APAC and 40% in Latin America).
Overall investment risk appetite remains steady, with 84% of APAC insurers planning to maintain their risk profile, compared with 82% globally. Within the global group maintaining risk, 57% see insufficient opportunities to justify additional risk-taking, up 22 percentage points from 2025, while 50% seek greater diversification within their existing risk budget. The findings suggest that stable risk appetite reflects selectivity, not simply confidence in existing exposures.
An increasingly strategic role for private markets
Over the past decade, private markets have evolved from an alternative source of yield into an established component of portfolios. Today, more than 9 in 10 global insurers (92%) allocate at least 5% of their investment portfolio to private markets, while more than 40% now allocate over 15%.
Adoption is forecast to accelerate, with 76% expecting to increase private markets allocations over the next 12 months (94% in 2025, 91% in 2024, and 89% in 2023) and 24% maintaining current levels.
APAC follows a similar pattern, with 78% planning increases (down from 94% in 2025) and 22% planning to maintain current levels. The findings suggest a shift from broad-based increases toward more selective deployment as insurers focus on portfolio construction, relative value and implementation within existing allocation targets.
Demand remains strongest in private debt, which was identified by 41% of respondents as an area for increased allocation. In APAC, private debt also leads, with 36% of insurers planning to increase their allocation, followed by hedge funds and liquid alternatives (33%) - pointing to continued interest in diversifying sources of income and return.
BlackRock’s Deputy Head of Asia Pacific and Head of APAC Institutional Business Hiro Shimizu said that APAC insurers are increasingly evolving their investment portfolios to adapt to a higher yield environment. “They are reassessing their risk management framework to accommodate a broader set of asset classes across public and private markets to achieve better risk adjusted returns, while keeping a close eye on regulatory and accounting rule changes,” he said.
Structural shifts
The research highlights the growing role of partnerships in insurers' operating models. Today, 84% of respondents describe their asset management approach as hybrid, combining internal and external investment capabilities, and 49% expect to increase their use of external asset management over the next 12 months. Reflecting insurers' growing focus on implementation, 74% of respondents plan to access private debt through separate accounts or bespoke mandates.
The role of these partnerships extends beyond investment management with 82% of insurers reporting external partnerships across at least two business functions, spanning investments, capital provision, liability and product design, and distribution.
In APAC, the share is higher at 88%, including 58% partnering on capital and 44% on liabilities or product design. This suggests APAC insurers are combining in-house expertise with external partners across the balance sheet, rather than just outsourcing investment management.
BlackRock’s Financial Institutions Group's Global Insurance Strategist Mark Erickson said that Insurers are increasingly looking for partners that can do more than manage investments. “To achieve their long-term objectives, insurers are looking across investment, capital, and technology holistically to navigate an increasingly complex operating environment. Bringing these capabilities together is the defining competitive advantage in this market,” he said.
Mirroring broader headlines across industries, insurers continue to invest in artificial intelligence (AI), as 60% of respondents report at least one scaled or embedded AI use case. Adoption is broad but scaling remains uneven – scaled or embedded applications are reported by 21% of respondents in underwriting and pricing, compared with 3% in investment selection and credit monitoring. APAC is broadly in line with the global trend, at 59%, 21% and 2%, respectively. These findings highlight the distinction between adopting AI and embedding it into repeatable investment workflows.
BlackRock’s Global Head of the Financial and Strategic Investors Group and Co-Head of the Global Partners Office Charles Hatami said that private markets are an established part of insurers’ investment strategies, but strategic commitment does not mean indiscriminate buying. “The question is not simply how much to allocate, but which assets and structures best support each insurer’s income, liquidity and capital objectives. That places a premium on investment selection and solutions designed for the insurance balance sheet,” he said.