Goldman Sachs Asset Management, an investment firm managing assets across diverse sectors, has released its 14th Annual Global Insurance Survey, offering insight into how insurers are adjusting their investment strategies in response to evolving economic challenges.
With inflation concerns intensifying, 52% of insurers now identify it as the most significant macroeconomic risk to their portfolios—an increase from 42% in 2024 and approaching levels seen in 2023.
The survey, based on responses from 405 Chief Investment Officers (CIOs) and Chief Financial Officers (CFOs) overseeing more than $14 trillion in assets, highlights how firms are repositioning their portfolios to navigate shifting market conditions.
Goldman Sachs Asset Management’s findings indicate that, despite inflationary pressures and slowing economic growth, insurers continue to allocate capital toward private assets.
“Our 14th Annual Global Insurance Survey shows insurers are navigating evolving macroeconomic concerns by rotating toward asset classes with the potential to provide both attractive risk-adjusted returns and diversification benefits,” added Mike Siegel, Global Head of Insurance Asset Management and Liquidity Solutions for Goldman Sachs Asset Management. “Amid this industry-wide rotation, important new trends in liquidity management may be developing.”
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According to the survey, 58% of insurers plan to increase investments in private credit over the next 12 months, reinforcing a strong appetite for alternatives that offer both diversification and the potential for enhanced returns.
The firm’s research highlights inflation as the dominant concern among insurers, driven in part by shifting policies around trade, immigration, and taxation. Other key risks cited by respondents include a potential US economic slowdown (48%), volatility in credit and equity markets (47%), geopolitical uncertainty (43%), and trade disputes (32%).
“As investors wait for policy clarity, many are concerned with the prospect of markets simultaneously confronting rising inflation and slowing economic growth in the US,” Siegel added.
He continued: “However, with 76% of insurers reporting the 10-Year US Treasury Yield will be between 4% and 5% at year-end 2025, a range consistent with the past year, we expect underlying inflation to continue to fall and our US growth outlook remains optimistic.
“While views on the Euro area and China are more pessimistic, actionable investment opportunities exist for discerning investors seeking to improve their risk-adjusted returns.”
Private credit is positioned as the most promising asset class for returns in the coming year, according to the survey’s respondents.
Goldman Sachs reports that 61% of insurers expect private credit to generate the highest total returns, marking its second consecutive year at the top of insurers’ preferred investments.
Other favoured asset classes include US equities (57%), private equity (55%), private equity secondaries (30%), and high-yield debt (28%). The firm underscores that the private credit market has expanded significantly over the past decade and is expected to continue growing in 2025, providing insurers with opportunities to diversify their lending portfolios while seeking competitive returns.
“The private credit market has experienced a significant transformation during the past decade,” said Matt Armas, Global Head of Insurance for Goldman Sachs Asset Management.
“We expect it will continue to expand in 2025. Through this growth, insurance companies will have ample opportunities to diversify their direct lending portfolios while pursuing attractive risk-adjusted returns.”
Expectations for US equities remain largely positive, with 83% of insurers forecasting gains in the S&P 500 Index this year.
However, following strong returns of 25% in 2024 and 26% in 2023, projections for 2025 are more measured. Goldman Sachs’s survey shows that 50% of insurers anticipate gains between 5-10%, while only 15% predict returns between 10-20%. Within fixed income, 35% of insurers plan to increase their exposure to duration risk—down from 42% last year—signalling a more cautious approach to interest rate movements.
The firm’s data also highlights a clear trend toward increased allocations in private assets. Insurers surveyed by Goldman Sachs Asset Management indicate plans to raise their exposure in several key areas: 58% to private credit, 40% to investment-grade private debt, 36% to asset-based finance, 32% to infrastructure debt, and 29% to private equity.
In contrast, only 17% of respondents plan to increase their holdings in US equities, and just 10% expect to boost European equity allocations.
Technological advancements, particularly in artificial intelligence, are shaping the insurance sector’s operational strategies. Goldman Sachs reports that 90% of insurers are either currently implementing AI solutions or actively considering them, up from 80% in 2024.
Among firms looking to adopt AI, 81% cite cost reduction as the primary motivator. The firm suggests that AI’s expanding role in risk underwriting and efficiency improvements could accelerate industry consolidation, as companies seek to optimise operations and scale effectively.
Conducted between January 16 and February 7, 2025, the 14th Annual Global Insurance Survey from Goldman Sachs captures the perspectives of senior investment professionals representing firms responsible for more than $14 trillion in balance sheet assets.
This extensive dataset provides a comprehensive view of how insurers are adapting their investment strategies in response to shifting economic and market conditions.
“As artificial intelligence technology evolves and improves, it will undoubtedly leave a lasting imprint on insurers across the globe,” added Armas.
“Some improvements will benefit risk underwriting and operational efficiencies, which could have broader industry implications as firms navigate evolving opportunities and challenges.”
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