A report by Clearwater Analytics highlights a rapidly expanding and increasingly complex global insurance investment outsourcing market. The 2026 Insurance Investment Outsourcing Report (IIOR), produced with DCS Financial Consulting, covers $5.5tn in third-party general account insurance assets under management across 96 asset managers.
The figure represents a 23% year-on-year increase and a 65% rise since 2021. The report also tracks $1.8tn in assets under advisement across 12 investment consultants, highlighting growing reliance on external expertise in insurance investment management.
The study shows the accelerating role of private markets in insurance portfolios, with third-party private insurance assets more than doubling since 2021 to $947bn, accounting for nearly one-third of outsourced allocations. Insurers are increasingly moving beyond traditional private placements into middle-market lending, infrastructure debt, and structured credit, with 67% of managers now offering private fixed income capabilities alongside public strategies.
Europe and the UK have emerged as a dominant force, with outsourced insurance assets growing 32% year-on-year to $2.1tn, now representing 38% of total outsourced insurance AUM. APAC and offshore markets recorded faster percentage growth than North America’s 12% increase, reflecting a more globally distributed market.
According to Clearwater Analytics CEO Sandeep Sahai and DCS Financial Consulting owner Steve Doire, the findings reflect a structural transformation in how insurers deploy capital globally, driven by rising complexity and the increasing role of consultants. The report also shows intensifying competition, with the top 10 managers’ share of assets falling from 70% to 59%.