Approximately 75% of insurers plan to increase their allocations to private markets over the next 12 months, despite rising government bond yields and growing scrutiny of private credit markets, according to a BlackRock survey reported by the Financial Times.
The survey, covering insurance companies managing more than $24tn in assets, reportedly found that appetite for private investments remains strong, although the proportion planning to increase allocations has declined from 94% last year. Private credit remains a particular focus, with 41% of respondents prioritising increased exposure to private debt over other private asset classes, including buyouts.
Institutional demand has reportedly remained resilient despite redemption pressures in retail-focused private credit vehicles and concerns over deteriorating loan quality. However, the relative attractiveness of private debt has been challenged by rising yields in public fixed income markets, with US 10-year Treasury yields increasing from 4.18% at the start of 2026 to 4.96%, while investment-grade corporate debt yields have risen to 5.84%.
Regulatory and capital treatment reportedly emerged as insurers’ leading concern regarding private debt exposure. US insurance regulators introduced new capital requirements for certain collateralised loan obligation holdings in July and have increased scrutiny of private credit ratings used to determine insurers’ capital requirements.
Mark Erickson, BlackRock’s global insurance strategist, said a significant rise in defaults and weaker recovery rates could moderate future allocations, although the survey suggests insurers have yet to materially scale back their private markets investment plans.
