Trade disputes a growing risk for insurers, survey finds

Written by Adam Cadle

26/03/2025

Tariffs and trade disputes have emerged as a major concern for global insurers, according to Goldman Sachs Asset Management’s (GSAM) latest annual survey of industry executives.

GSAM’s survey, The Great Pivot revealed that almost one-third (32%) of chief investment officers and chief financial officers cited trade tensions as a significant macroeconomic risk, ranking it fifth among top concerns. The issue did not appear in last year’s survey, highlighting a shift in sentiment amid ongoing economic uncertainty.

Inflation remains the top risk for insurers, with 52% of respondents citing it, up from 42% last year. Fears of a US recession, however, have eased slightly, with 48% of executives identifying it as a major risk, down from 52% in 2024.

Forty-seven percent (47%) of respondents highlighted credit and equity market fluctuations as a risk, while 43% pointed to geopolitical uncertainty, both slightly lower than last year’s figures.

Insurers are increasing allocations to private investments. The survey found that 62% of respondents plan to expand their exposure to private assets in the coming year, with private credit ranked among the most promising asset classes for returns.

At the same time, artificial intelligence is playing a growing role in the industry. Nearly half of respondents (48%) reported already using AI in their operations, while another 42% said they plan to explore its adoption within the next year.

The survey gathered responses from 405 insurance executives managing a collective $14trn in global balance sheet assets. Life insurers made up the largest share of respondents (43%), followed by property and casualty insurers (29%), multiline insurers (16%), reinsurers and health insurers (both 5%), and captives (1%).

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