More than half of global insurers are planning to expand their captive management capabilities over the next 12 months, according to the latest Global Insurance Report from BlackRock. The report finds that 53 per cent of insurers surveyed plan to increase their use of captives. This shift is part of a major move toward more flexible operating models and a heightened emphasis on capital management across the industry. The increased focus is driven by the need for insurers to diversify balance sheet income through fee-based revenue, optimise balance sheets and capital structures, and access non-dilutive sources of capital. The findings show that 87 per cent of global insurers are changing their asset management operating model, with many moving to hybrid models that combine internal expertise with external partners. This operational shift is supported by major investments in technology and a growing interest in using AI for tasks such as investment selection and risk underwriting. In addition to captives, capital management initiatives include 67 per cent of insurers anticipating the utilisation of reinsurance sidecars and 54 per cent expecting to increase their use of third-party capital. Mark Erickson, BlackRock Global Insurance Strategist, says: "Given the various market and industry dynamics, insurers are actively making changes across multiple dimensions of their businesses." The industry navigates a landscape marked by macroeconomic volatility, with inflation resurfacing as the top macro risk, cited by 63 per cent of insurers. Despite this, the report, which surveyed 463 insurance investment professionals covering US$23 trillion in insurance assets under management (AUM), confirms that demand for private assets remains robust, with 30 per cent of respondents planning to increase allocations. Read the full BlackRock Global Insurance Report 2025
