In its latest report, Clearwater Analytics has disclosed that unaffiliated general account insurance assets under management (AUM) grew 24% year-over-year to a huge $4.5 trillion.
The report, produced in partnership with DCS Financial Consulting and titled, “2025 Insurance Investment Outsourcing Report (IIOR),” also shows private market assets AUM grew by 34% year on year to $800 billion. Impressively, a decade ago, less than $50 billion was reported in this segment.
“This shift toward private markets demonstrates insurers’ search for yield and portfolio diversification,” explains Clearwater.
With private asset class managers entering the insurance space, there has been a noticeable shift to yield and portfolio diversification.
Clearwater notes that this steep rise reflects the need for specialised expertise in emerging asset classes, the search for yield in a challenging market environment, and structures and asset classes that address increased regulatory complexity.
All in all, these factors have contributed to an unprecedented demand for sophisticated investment management technology platforms capable of handling complex multi-asset portfolios.
While private assets are on the rise, public assets remain the foundation of an insurer’s multi-asset class portfolio. According to the report, 83% of participating managers reported public asset class strategies, with many of them also offering private asset classes.
Lastly, the report highlights that over 80% of participating managers now provide customised portfolio reporting, cash flow projections, accounting analytics, and regulatory assistance driven by advanced technology solutions.
Sandeep Sahai, Chief Executive Officer, Clearwater Analytics, commented, “Looking back over the last decade of the report, we have seen outsourced AUM almost triple to $4.5 trillion, the number of managers more than double to 90 participants, and private asset class AUM surge from less than $50 billion to over $800 billion.
“Clearwater recognised the significance of these trends years ago and dedicated resources to build the most comprehensive cloud-native platform for institutional investors across global public and private markets. This transformation requires investment expertise and a robust technology infrastructure to manage increasing multi-asset complexity.”
Steve Doire, Owner of DCS Financial Consulting and Strategic Advisor to Clearwater, added, “Insurers are increasingly leveraging external managers for both traditional fixed income and complex alternative assets, including private credit—a shift that was barely visible five years ago. The IIOR serves as a key resource for insurers to identify and research managers with the expertise, asset class strategies, and related services and technology needed to support their investment operations.”
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