Clearwater Analytics Publishes 2024 Insurance Investment Outsourcing Report
Clearwater Analytics (NYSE: CWAN) has released its 2024 Insurance Investment Outsourcing Report (IIOR). This eleventh annual report, often referred to as the 'Yellow Pages' for insurance-focused asset managers, includes profiles of 70 asset managers and 12 investment consultants, the latter being new additions. This year’s report highlights several key trends, including a continued growth in outsourcing with $3.6 trillion in insurance assets under management (AUM) and $900 million in consultant assets. Notably, private asset classes have grown 40% over the last two years to $602 billion, while public asset classes have remained flat. The report also reveals that public fixed income still dominates with 70% of AUM.
The report indicates that more managers are entering the insurance asset management business, with 22 new managers joining in the last three reports. Investment consultants are increasingly prominent, helping insurers diversify into private asset classes. This growing complexity and sophistication in insurer investment programs is a testament to the evolving industry landscape.
- Clearwater Analytics reported a total of $3.6 trillion in insurance AUM, highlighting a strong growth trajectory.
- Private asset classes grew to $602 billion, marking a 40% increase over the last two years.
- The 2024 IIOR includes 70 asset managers and 12 investment consultants, expanding the resource pool for insurers.
- Public fixed income continues to dominate with 70% of AUM, indicating stability within this asset class.
- The market shows a 7% year-over-year growth in third-party insurance general account AUM, reflecting increasing market complexity and sophistication.
- 22 new managers have joined the insurance asset management business over the last three reports, indicating healthy industry growth.
- Public asset classes reported flat growth over the last two years, indicating a lack of momentum in this area.
- Despite an increase in private asset classes, there is still significant reliance on public fixed income, which may limit diversification benefits.
Go-To Resource for Insurance Firms Outsourcing Investment Management Reveals Market Trends Toward Private Asset Classes
Clearwater partners with DCS Financial Consulting, who designs and administers the IIOR. Each participant has a profile page with robust details on AUM, types of assets managed, as well as insurer-specific services offered. Additionally, 14 summary analyses provide users with rankings of participants in different asset classes and other useful insights. This report is highly regarded in the industry and leveraged by numerous insurers to identify asset managers and consultants who focus on their space.
The report shows the outsourcing trend continues to grow with
Top findings of this year's global report:
- More managers enter the insurance asset management business each year. Over the last three reports, 22 new managers joined the IIOR.
- Many of the new managers bring private credit and alternative capabilities supporting the trend of insurers adding these strategies to their investment programs.
- Private asset classes reported grew to
$602 billion 40% over the last two years while public asset classes were flat over the same period - Investment consultants have become more prominent in the space, with many helping insurers extend their investment strategy into private asset classes.
- While there is a lot of activity in private asset classes, public fixed income continues to dominate outsourced assets with
70% of AUM reported in the category.
"Insurer investment programs have grown in sophistication since the 2008 financial crisis and the prolonged low-rate environment convinced many insurers to look beyond investment grade bonds," said Sandeep Sahai, CEO at Clearwater Analytics. "As investors diversify to increasingly complex asset types, they invest the time to understand these asset classes with the support of experts represented in our guide. We have seen increased alternative investments among the 800-plus insurance clients on the Clearwater platform and their money managers."
"The trend of insurers moving towards external asset management speaks volumes about the expertise and scale that external managers offer," said Steve Doire, Strategic Advisor at Clearwater Analytics and owner of DCS Financial Consulting. "The sheer variety of specialty asset managers now available to insurers is a testament to the evolution of the industry. The
About Insurance Investment Outsourcing Report
The Report, in its 11th year running, profiles investment management firms who offer the specialized resources and expertise required to manage insurance companies' investment assets. This year's report includes investment consultants for the first time. The report can be downloaded here.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading SaaS solution, automates the entire investment lifecycle. With a single instance, multi-tenant architecture, Clearwater offers award-winning investment portfolio planning, performance reporting, data aggregation, reconciliation, accounting, compliance, risk, and order management. Each day, leading insurers, asset managers, corporations, and governments use Clearwater's trusted data to drive efficient, scalable investing on more than
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SOURCE Clearwater Analytics
FAQ
What is the total insurance AUM reported in the 2024 Clearwater Analytics report?
How much have private asset classes grown according to the 2024 IIOR?
How many new managers joined the IIOR over the last three reports?
What percentage of AUM is in public fixed income according to the 2024 IIOR?
How much consultant assets under advisement were reported in the 2024 IIOR?
What is the year-over-year growth rate in the third-party insurance general account AUM?
