Did bitcoin’s record highs spur insurers’ digital push?

Nearly 9 in 10 firms see digital asset adoption as a strategic priority.

Insurance asset managers are moving quickly to build exposure to digital assets, with 92% either already having or developing a digital asset strategy, according to a global study commissioned by Brava Finance.

The study, which surveyed 25 insurance asset managers across markets including the US, UK, Singapore, Hong Kong and parts of Europe, found that 88% now see digital asset adoption as a strategic priority. 

More than half, or 52%, said it is an urgent and immediate priority for their organisation.

Most respondents already have some exposure. About 88% said they hold digital assets in their portfolios, with 44% allocating between 1% and 2%, and 36% holding between 2% and 5%. 

All respondents said they plan to increase allocations over the next 12 months. 

Around 44% expect allocations to rise to between 5% and 10%, whilst another 44% plan to increase exposure to between 10% and 25%.

Digital assets are increasingly being viewed as a diversification tool, with 92% of insurance asset managers saying they are an effective way to diversify portfolios. 

The main drivers include the potential to improve risk-adjusted returns, cited by 72%, and the search for alternative sources of yield, cited by 40%.

Bitcoin’s recent record valuations were a trigger for many firms, with 96% saying it prompted renewed discussions around digital assets. At the same time, concerns about volatility remain. 

Almost all respondents, or 96%, said they are worried about Bitcoin falling from recent highs, pushing 88% to look at alternative digital assets such as stablecoins.

The study found that the biggest challenges to wider adoption are custody and security, regulatory uncertainty, market volatility, and ESG and reputational risks. 

Internal hurdles also remain significant, particularly governance approvals, unclear operating processes, and concerns about vendor reliability. 

Client resistance is not seen as a major issue, with 92% saying clients and trustees are actively pushing them to consider digital asset strategies.

Alongside the study, Brava Finance said it has launched a stablecoin separately managed account and its first credit fund through a regulated Cayman vehicle. 

The fund targets annual returns of 8% to 12%, offers next-day liquidity, and avoids direct exposure to volatile assets such as Bitcoin by focusing on stablecoin-based lending strategies.