Clearwater Analytics: Insurers expand further into private markets
According to Clearwater Analytics, a technology platform for investment management, private asset AUM among insurers grew 34% in 2024. This reflects an ongoing shift in how insurers are approaching investment management.
Today, Clearwater Analytics released the 2025 Insurance Investment Outsourcing Report (IIOR), produced in partnership with DCS Financial Consulting, and including data from 101 participating managers and consultants. The report shows a rise in insurance investment outsourcing, which highlights a confluence of market dynamics, such as the growing need for specialised expertise in emerging asset classes, the ongoing search for yield amid challenging conditions, and the increasing complexity of regulatory requirements.
The global report reveals three key trends that, according to Clearwater Analytics, are reshaping insurance investment management:
- Private Asset Class Expansion: Private asset AUM grew 34% YoY to $800 billion. A decade ago, less than $50 billion was reported in this segment. Private asset class managers are entering the insurance space and insurers are investing. This shift toward private markets demonstrates insurers’ search for yield and portfolio diversification.
- Multi-Asset Class: While private assets are on the rise, public assets remain the foundation of an insurer’s multi-asset class portfolio. Eighty-three percent of participating managers reported public asset class strategies, with many of them also offering private asset classes. Many now provide both, requiring enhanced operations and robust analytical capabilities.
- Technology-Driven Solutions are Required: Over 80% of participating managers now provide customized portfolio reporting, cash flow projections, accounting analytics, and regulatory assistance—all powered by advanced technology solutions. AI-driven analytics are gaining traction as data-driven decision-making becomes essential.
