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Insurers plan more private credit allocations, but stay cautious on risk
Marsh said 57% of insurers expect to increase private credit over the next 12 to 24 months, with higher-quality segments like investment-grade direct lending the main focus.
Marshs 2026 Global Insurance Investments Survey found insurers remain interested in private credit, even as they take a more cautious stance toward new allocations. The survey indicates private credit is the most popular target for planned investment growth over the next 12 to 24 months, ahead of public investment-grade fixed income.
More than half of insurers, 57%, said they expect to increase allocations to private credit, while 48% selected public investment-grade fixed income. Marsh noted that this represents a shift from its 2024 survey baseline, when only 32% planned to increase exposure to private credit and 37% intended to raise allocations to fixed income.
The survey points to a preference for higher-quality parts of the private credit market. Investment-grade direct lending and private placements were cited by 40% of respondents, and 38% selected investment-grade structured credit, asset-based finance, NAV lending, and fund finance.
Marsh also highlighted where growth may be concentrated and which insurer types show the strongest demand. North American insurers were most likely to expand, with 74% of Canadian respondents and 65% of US insurers expecting higher allocations, and larger insurers leading the trend, while life insurers showed the strongest appetite at 73% planning to increase allocations. At the same time, Marsh reported that insurers continue to be cautious about private credit risks, with the survey citing frequently mentioned concerns related to the asset class.