Marsh, a global professional services firm providing risk, reinsurance, capital, people, investment and management advisory services, announced its results 2026 Global Insurance Investment Surveysuggesting that insurers continue to favor private credit despite taking a more cautious approach to new investment.
Marsh’s research found that private credit remains the most popular area for planned investment growth over the next 12 to 24 months. More than half (57%) of insurers surveyed said they expected to increase allocations to this asset class, surpassing public investment-grade fixed income, which was selected by 48% of respondents.
The findings represent a significant change from Mercer and Oliver Wyman’s 2024 Global Insurance Investment Survey, when only 32% of insurers planned to increase private credit exposure and 37% planned to increase fixed income allocations.
Insurers are turning much of their attention to higher-quality areas of the private credit market, Marsh said. Forty percent of respondents cited investment-grade direct lending and private placements as preferred investment opportunities, and 38% cited investment-grade structured credit, asset-based financing, net asset value (NAV) lending and fund financing.
David Morrow, global head of insurance advice at Mercer, added: “Private credit represents an attractive opportunity for insurers, particularly in the asset-backed space. Insurers can diversify corporate risks while achieving substantial yield improvements relative to similarly rated, investment-grade public market debt.”
Marsh’s findings indicate that North American insurance companies are most likely to expand private credit investments. Some 74% of Canadian respondents and 65% of US insurers expect to increase allocations, compared with 51% of European insurers and 46% of UK insurers.
The survey also suggests that larger insurance companies are driving this growth. Marsh found that 81% of organizations with more than $25 billion in assets under management intend to increase private credit exposure, while among insurers with less than $25 billion in assets under management, this proportion dropped to 46%. Life insurers have shown the strongest interest in the asset class, with 73% planning to increase allocations, compared with 56% of health insurers and 40% of property and casualty insurers.
Marsh reported that despite continued demand, insurers remain cautious about the risks associated with private credit. The most common concerns cited by 66% of respondents were tighter liquidity premiums and tighter credit spreads, raising questions about whether investors are being adequately compensated for reduced liquidity. Other common risks include weaker underwriting standards or loan covenants (selected by 54% of respondents), as well as rising default rates, wider spreads and greater use of payment-in-kind (PIK) structures (highlighted by 51% of respondents).
Amit Popat, head of global financial institutions at Mercer, added: “Taking advantage of private credit, insurers must have a rigorous manager selection process. It is important for them to select managers with the sourcing, underwriting, portfolio construction and exercise capabilities to handle the next phase of the credit cycle.”
Marsh’s research also points to capability gaps across the insurance industry. Only 30% of insurers surveyed said they had most of the expertise needed to confidently invest in private markets, while 29% said they had only some of the required capabilities.
Marsh said the restrictions could limit insurers’ ability to effectively diversify their portfolios, maintain target allocations and conduct ongoing due diligence. As private markets interest continues to grow, the firm believes insurers are increasingly likely to rely on external investment experts to assist with manager selection, liquidity management, capital modelling, cash flow forecasting and trade execution.
“Even the largest insurance companies recognize that they don’t have all the capabilities or origination capabilities in-house and are looking to outside private credit managers to help fill the gaps and improve risk-adjusted yields,” said Josh Zwick, a partner in Oliver Wyman’s insurance and asset management practice. “Everyone is looking to enhance their capabilities, and that often means looking for partners who can help navigate the complexities of different parts of the massive private credit market.”
Marsh’s survey also found that AI currently plays a relatively limited role in insurance companies’ investment operations. More than half (54%) of respondents said they are not using AI meaningfully, while 29% use AI to support analysis of alternative investment data and research. Where the technology is adopted, its most common applications include document review, data integration, scenario modeling, manager supervision and risk assessment.
The results also show that AI adoption increases with organizational size. Marsh found that three-quarters of insurers with more than $100 billion in assets under management reported meaningful use of AI, compared with only about one in 10 of those with less than $1 billion in assets under management said the same.
Marsh conducted the 2026 Global Insurance Investment Survey between March and April 2026, collecting responses from 123 insurance companies in 24 countries with investment assets exceeding US$4 trillion. The company said it supports insurers through its Guy Carpenter, Mercer and Oliver Wyman businesses, providing advice and services in reinsurance, capital, investments, people and management consulting.
