Insurers Focus on Inflation, Private Markets, and Technology in 2025

BlackRock's 2025 Global Insurance Report, based on input from 463 insurance investment leaders worldwide, offers a look at how insurers are responding to today's economic and market environment. According to BlackRock, the survey represents firms managing $23 trillion in assets. 

Inflation Tops the List of Concerns 

Insurers see inflation as the biggest economic risk this year. While recession worries have eased, inflation, interest rates, and geopolitical uncertainty remain key pressures. Per the report, only 12 percent of insurers plan to take on more investment risk, showing a cautious stance. 

Public Markets Still Matter, but Private Markets Are Growing 

Insurers continue to hold meaningful positions in stocks, bonds, and cash. However, private markets are playing a bigger role. According to BlackRock, 30 percent of companies plan to increase their private market allocations, with strong interest in private credit, infrastructure debt, and diversified alternative strategies. 

Smaller, Steady Shifts into Private Assets 

Most insurers planning to boost private exposure expect to do so gradually — typically 1 percent to 5 percent. Per the report, liquidity needs remain the biggest consideration when adding private assets, along with reporting and regulatory requirements. 

Hybrid Investment Models Are Becoming the Norm 

Insurers are moving away from fully in-house or fully outsourced investment management. Instead, most are now blending internal teams with external partners. According to BlackRock, 87 percent of insurers are changing their investment operating model, with many shifting toward hybrid structures. 

Growing Use of Capital Management Tools 

To strengthen balance sheets and diversify capital sources, insurers are turning to strategies such as reinsurance sidecars and third-party capital. Per the report, more than half also expect to expand captive or reinsurance structures. 

Technology and AI Take Center Stage 

Technology investment is rising, with a major focus on artificial intelligence. According to BlackRock, insurers are using artificial intelligence (AI) to help select investments and improve underwriting accuracy, supported by greater data and risk-management systems. 

Sustainability Goals Remain in Focus 

Insurers continue to support long-term sustainability and climate-transition strategies. Clean-energy infrastructure remains the most attractive opportunity, followed by core infrastructure and green bonds. Per the report, firms are using stronger data and reporting tools to track progress on climate commitments.