Global insurers are planning to increase their allocation to private markets in investment portfolios, according to BlackRock’s 15^th annual survey of the global insurance industry.

The survey canvassed the views of 463 insurers across 31 markets representing investable assets of more than $24trn, with Asia Pacific insurers representing a quarter of the respondents and $7trn of assets.

Private markets and alternatives continue to grow in popularity amongst these insurance allocators, with 92% allocating at least 5% of their portfolios to private markets.

Some insurers are more heavily invested in the asset class, with more than 40% allocating over 15% of their investment portfolio to private markets, with 76% planning further increases.

Demand for private debt remains the strongest, which was identified by 41% of respondents as an area for increased allocation, the survey found.

In Asia Pacific, 36% of insurers said they plan to up their allocation to private debt, followed by hedge funds and liquid alternatives (33%).

Hiro Shimizu, deputy head of Asia Pacific and head of APAC institutional business at BlackRock said: “APAC Insurers are increasingly evolving their investment portfolios to adapt to a higher yield environment.”

“They are reassessing their risk management framework to accommodate a broader set of asset classes across public and private markets to achieve better risk adjusted returns, while keeping a close eye on regulatory and accounting rule changes.”

Charles Hatami, global head of the financial & strategic investors group and co-head of the global partners office at BlackRock, said: “Private markets are an established part of insurers’ investment strategies, but strategic commitment does not mean indiscriminate buying.”

“The question is not simply how much to allocate, but which assets and structures best support each insurer’s income, liquidity and capital objectives. That places a premium on investment selection and solutions designed for the insurance balance sheet.”