Insurers Sharpen Private Markets Strategies as Operating Models Evolve
Insurers remain committed to expanding private-market investments but are becoming more selective about deploying capital, according to BlackRock’s 2026 Global Insurance Report, as higher yields reduce pressure to take additional investment risk.
The survey found that 76% of respondents expect to increase private-market allocations, down from 94% in 2025. BlackRock said the decline reflects a shift toward portfolio construction, relative value and investments aligned with insurers’ liabilities and capital requirements.
Private debt remains the leading area for increased allocations, cited by 41% of respondents. Within private debt, direct lending, investment-grade private placements and residential mortgage loans were among the most frequently identified opportunities.
Meanwhile, 82% of respondents plan to maintain their current investment risk, while just 9% expect to increase it. Higher yields allow insurers to pursue return targets without materially increasing portfolio risk, BlackRock said, although inflation remains a significant concern for 62%.
“The answer is different for every company,” said Mark Erickson, global insurance strategist at BlackRock.
Investment priorities also differ by business model. Life and annuity insurers are managing longer-duration liabilities, while property and casualty insurers face claims severity and inflation pressures. Health insurers highlighted utilization and medical costs.
External partnerships are becoming more important. Some 84% of respondents combine internal and external investment capabilities, and approximately half expect to increase their use of outside investment managers over the next year.
Artificial intelligence remains insurers’ leading technology investment priority, with adoption advancing across underwriting, claims and compliance. However, perceptions differ: 73% of senior executives reported at least one scaled or embedded AI application, compared with 51% of other respondents.
BlackRock said the findings point to increasingly differentiated strategies as insurers coordinate decisions across investments, liabilities, capital, technology and distribution to meet their business objectives.
The firm’s 15th annual report surveyed 463 insurance professionals across 31 countries in July and August. Participants represented more than $24 trillion in insurance assets.