87% of global insurers now adopting hybrid asset management models

Written by Adam Cadle

21/10/2025

Eighty-seven per cent of global insurers are now adopting hybrid asset management models that combine their internal expertise with external partners, supported by major investments in technology, according to latest research published by BlackRock.

Its latest Global Insurance Report also revealed that there is a growing emphasis on capital management across all types of insurers. Over the next 12 months, 67% anticipate utilising reinsurance sidecars, 54% expect to increase their use of third-party capital, and 53% plan to expand their captive management capabilities.

This heightened focus on capital management is largely driven by insurers’ need to diversify balance sheet income through greater fee-based revenue, optimise balance sheets and capital structures, differentiate asset mixes via sidecars, and access non-dilutive sources of capital.

Inflation tops global insurers’ risk concerns (63%), while overall risk appetite remains low (12% planning to increase exposure).

BlackRock also revealed private markets continue to gain importance globally, with 30% of insurers planning to increase their allocations and 58% intending to maintain current levels.

Specifically concerning the UK, 45% of survey respondents expect a soft landing, slightly below 53% for EMEA. The most significant macro considerations highlighted by UK insurers were regulatory developments (27%) and inflation risk (18%).

Forty-eight per cent of UK insurers are planning to maintain their current risk profile. Of these, 81% of firms polled are seeking diversification, 57% believe they are taking sufficient risk given market conditions, and 62% plan to manage risk holistically - making budget considerations based on both underwriting and investment risk.

Sixty-seven per cent of UK insurers will maintain their current public assets allocation. Meanwhile, 52% of those polled plan to maintain their allocations to private assets.

Globally, insurers also remain committed to their long-term sustainable and transition investing goals. For the second year in a row, insurers surveyed most commonly cited clean energy infrastructure (55%) as the most attractive opportunity for sustainable and transition investing, followed by core infrastructure (51%) and green bonds (38%).

“The story of 2025 is one of caution amid volatility, but also of conviction in the long-term opportunities private markets can offer,” said Mark Erickson, global insurance strategist of BlackRock’s Financial Institutions Group.

“Insurers are navigating the environment with discipline while many are embracing new operating models, such as hybrid solutions to access private assets, and adopting investment, risk, and AI software to strengthen their portfolios.”

The report surveyed 463 senior investment professionals across 33 markets – representing $23trn in AuM.

Distribution was 37% from EMEA, 29% from North America, 25% from Asia-Pacific, and 9% from Latin America. Out of the 173 respondents from the EMEA region, 33 were based in the UK.

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