Steve Doire, CFA, CPA, CPCU
Strategic Platform and Client Advisor
Steve brings extensive knowledge of the insurance industry, insurance asset management, and general asset management to Clearwater and its clients. He works closely with clients and prospects to help them leverage the capabilities of the Clearwater platform. He also collaborates with platform development teams, clients, and other industry influencers to evolve both the Clearwater system offering and the user experience of Clearwater’s clientele. Steve worked for more than 20 years as a leader in Deutsche Asset Management’s insurance asset management group where helped grow the business from $20 billion to more than $200 billion in AUM, including expansion into global markets. He also worked for a P&C company for several years early in his career.
Looking at an analysis of recent insurance asset management data, we can see several key trends shaping this industry, impacting how insurers manage their assets and which strategies they employ. Here are some of the trends redefining the insurance asset management space.
For an in-depth look at trends in the insurance investment outsourcing space, download the full report: Looking back over 10 years of the Insurance Investment Outsourcing Report.
External Managers on the Rise
Insurers are increasingly tapping external managers to handle their assets. This mega-trend, evident over the last decade, underscores the value insurers are finding in the expertise and capabilities of third-party managers. The 67 participating managers in the 2023 IIOR collectively reported 6,400 insurance clients.
Managers Gaining Ground
The insurance space has experienced an influx of managers in recent years. A common trend among these managers is that they are bringing private asset capabilities to insurers. Although insurer allocations to private assets have traditionally been modest, they are growing, and specialty managers are increasing their insurance focus.
More Allocation to Private Investments
A noteworthy shift is happening in the asset allocation of insurers. More and more, insurers are opting to allocate their assets towards private investments. Two-thirds of managers now offer private asset class expertise, with a significant and growing allocation going towards private fixed income as well as private equity and other alternatives.
The Strength of Core Fixed Income
Despite the increased interest in private and alternative assets, core fixed income remains the largest allocation for insurers. Core fixed income continues to be a central pillar of insurance asset management, proving that tradition still holds its weight in this evolving landscape.
Venture into Private Equity
Insurers have been allocating more of their risk budgets into the private side of equity-type investments. This trend includes real estate, infrastructure, private equity, and other types of investments. It highlights the increasingly diversified approaches insurers are taking to optimize returns while managing risk.
Interested in learning more? Download our in-depth analysis: Looking back over 10 years of the Insurance Investment Outsourcing Report.