$3.6trn in insurance AuM outsourced as trend continues to grow

Written by Adam Cadle

29/05/2024

Insurance investment management outsourcing continues to grow with $3.6trn in insurance AuM reported for YE2023, compared to $3.2trn in 2022, Clearwater Analytics has revealed.

In its 2024 Insurance Investment Outsourcing Report (IIOR), Clearwater Analytics found that more managers are entering the insurance asset management business each year. Over the last three reports, 22 new managers joined the IIOR.

Private asset classes reported grew to $602bn, up 40% over the last two years, while public asset classes were flat over the same period. Investment consultants have become more prominent in the space, with many helping insurers extend their investment strategy into private asset classes.

The report added that while there is a lot of activity in private asset classes, public fixed income continues to dominate outsourced assets with 70% of AuM in the category.

"The trend of insurers moving towards external asset management speaks volumes about the expertise and scale that external managers offer," said Steve Doire, strategic adviser at Clearwater Analytics and owner of DCS Financial Consulting.

"The sheer variety of specialty asset managers now available to insurers is a testament to the evolution of the industry.”

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