APAC insurance outsourcing jumps 45.8% as global assets hit $5.5t record

Outsourced AUM reaches $573b, or 10.5% of the global total.

The Asia-Pacific (APAC) insurance outsourcing market grew by 45.8 % year-on-year, outpacing all other regions on a percentage basis.

This expansion brings APAC’s outsourced assets under management (AUM) to $573b, representing 10.5% of the global total and highlighting a geographic shift away from traditional North American dominance.

Europe and the UK also recorded significant growth, with outsourced AUM rising 32 % year-over-year to $2.1t. 

This more than doubles their 2021 figure of $1.0t and places 38 % of the global outsourced insurance AUM within the European and UK markets. 

Both the APAC and European growth rates significantly outpaced North America’s 12 % gain.  

Globally, third-party outsourcing of insurance general account investment assets has reached a record $5.5t. 

The report, compiled by Clearwater Analytics and DCS Financial Consulting, shows a 23% increase in outsourced assets under management (AUM) over the past year and a 65% surge since 2021 across 96 surveyed asset managers. 

Furthermore, 12 investment consultants now advise on $1.8t in assets, a figure that has nearly doubled in two years.  

Third-party private insurance assets have more than doubled since 2021 to reach $947b, making up nearly one-third of all outsourced insurance allocations. 

Insurers are increasingly moving capital into middle-market lending, infrastructure debt, and structured credit, with 67% of participating managers now offering private fixed-income strategies. 

As the market expands globally, the insurance asset management sector has become more competitive.

Over the last decade, the market share held by the top 10 asset managers dropped from 70% to 59%, allowing mid-sized and specialised firms to win mandates through regional presence and private market capabilities.