Conning said that despite expectations for a more challenging macroeconomic environment, including rising inflation, liquidity risks and lower Federal Reserve interest rates, U.S. insurers reportedly remain “optimistic” about investment conditions in 2026.
A new survey conducted by the firm in December 2025 found that 76% of respondents believe investment opportunities for insurance companies are improving.
Corning explained that reasons for the rise in risk appetite include improving yields on high-quality fixed income securities, attractive investment opportunities in a variety of private markets and growing industries, including digital and traditional infrastructure.
While most insurers remain optimistic, the company’s new survey highlights that some “key” challenges remain.
Notably, inflation is once again a top concern, rising to the second-biggest risk after ranking seventh in last year’s survey.
Liquidity risk has also become a significantly higher priority, rising in the rankings after previously ranking well below other considerations, a shift that may reflect increasing allocations to private assets in insurers’ portfolios.
Elsewhere, market and asset price volatility is considered the main portfolio risk, with recession risk ranking third.
The survey showed that 57% of insurance companies expect inflation to rise moderately over the next 12 months, while 52% expect the 10-year Treasury yield to end the year below 3.5%.
Additionally, 47% of insurance companies said FOMC action will be critical to their investment strategies in 2026.
Still, Corning noted that insurers are looking for opportunities in private markets, high-quality fixed income and infrastructure that will allow them to increase the investment exposure they need for growth in the year ahead.
Matt Reilly, managing director of Conning Insurance Solutions Group and author of the survey, said: “Increasingly complex markets require insurers to balance increased risk awareness with adapting to changing macroeconomic expectations. In this environment, choosing the right partners, tools and investment strategies is critical.”
