Insurance investors to boost allocations abroad this year

Majority of insurers concerned about demographic shifts and AI.

Insurance investors expect to increase their allocations abroad this year, with over half (53%) planning to do so, according to Aviva Investor’s private markets study 2025.

Region-wide (Asia-Pacific), 64% of investors will likely increase their allocations outside of their local market, particularly in Japan, Singapore, and South Korea.

Meanwhile, allocations to private corporate debt vary by region, standing at 12% in North America and 9% in Asia-Pacific (APAC), compared to a global average of 10%. 

The disparity reflects the maturity of markets, with APAC’s private credit market still smaller than that of the US, according to Aviva Investors' research director for private markets, Nick Fisher.  

Private equity accounted for 19% of total allocations in 2024. 

Public pensions and insurance companies hold slightly lower allocations at 17% and 16%, respectively, whilst financial institutions allocate significantly more at 28%. 

Structured finance and nature-based solutions remain niche, with allocations of 5% and 3%, though official institutions allocate 8% to structured finance.  

Regional investment preferences remain strong. European investors favour North America over APAC, whilst U.S. investors prefer APAC (62%) to Europe (29%). 

Canadian investors take the opposite stance, favouring Europe (52%) over APAC (33%).  

Geopolitical risks are the top concern for investors over the next decade, cited by 73% of respondents. 

Financial and official institutions expressed the most concern (80% and 85%, respectively), alongside investors from Canada (82%), China, Japan, Singapore, South Korea, and Spain. 

Other major concerns include demographic shifts, highlighted by 82% of insurers, and technological advances, particularly artificial intelligence. 

Social inequality was also identified as a priority by a significant number of APAC investors.