More than nine in 10 global insurers (92%) have allocated at least 5% of their investment portfolio to private markets, according to latest research, while more than 40% now allocate over 15%.
BlackRock’s 15th annual global insurance report, Different by Design: Rethinking the Insurance Model, revealed that 76% of global insurers expect to increase private markets allocations over the next 12 months and 24% expect to maintain current levels, albeit down from the historic highs of the past three years (94% in 2025, 91% in 2024, 89% in 2023). Demand remains strongest in private debt, which was identified by 41% of respondents as an area for increased allocation.
In an increasingly complex global investment environment, inflation risk remains the most cited macro concern for insurers (62%) – consistent from 2025. However, 61% of insurers globally expect a soft landing in the next year (24% see no landing; 9% expect stagflation conditions). While the majority expect a soft landing, the findings show regional disparities (75% in EMEA expect a soft landing, 63% in North America, 47% in Asia-Pacific and 40% in Latin America).
Overall investment risk appetite remains steady, with 82% planning to maintain their risk profile. Within the group maintaining risk, 57% see insufficient opportunities to justify additional risk-taking, up 22 percentage points from 2025, while 50% seek greater diversification within their existing risk budget.
The research also highlighted the growing role of partnerships in insurers' operating models. Today, 84% of respondents describe their asset management approach as hybrid, combining internal and external investment capabilities, and 49% expect to increase their use of external asset management over the next 12 months. Reflecting insurers' growing focus on implementation, 74% of respondents plan to access private debt through separate accounts or bespoke mandates.
The role of these partnerships extends beyond investment management with 82% of insurers reporting external partnerships across at least two business functions, spanning investments, capital provision, liability and product design, and distribution.
“Insurers are increasingly looking for partners that can do more than manage investments,” Mark Erickson, global insurance strategist in BlackRock’s financial institutions group, said.
“To achieve their long-term objectives, insurers are looking across investment, capital, and technology holistically to navigate an increasingly complex operating environment. Bringing these capabilities together is the defining competitive advantage in this market.”
Mirroring broader headlines across industries, insurers continue to invest in artificial intelligence (AI), as 60% of respondents reported at least one scaled or embedded AI use case. Adoption is broad but scaling remains uneven – scaled or embedded applications are reported by 21% of respondents in underwriting and pricing, compared with 3% in investment selection and credit monitoring.
This year’s survey, conducted from June to September 2026, encapsulated the views of 463 senior industry executives in 31 markets with the following regional distribution: 38% from EMEA, 28% from North America, 25% from Asia-Pacific, and 9% from Latin America. Taken together these companies represented investable assets of more than US$24trn.
Of the 174 EMEA respondents, 32 were based in the UK.
