The Markets May 22, 2025

Insurance AUM Reaches $4.5T in 2024, Tripling in Past Decade

A significant majority of third-party insurance AUM is invested in fixed-income strategies, but insurers are increasingly allocating to alternative investments.
Reported by

Unaffiliated general account insurance assets—assets managed by third parties for insurers—rose to $4.5 trillion at the end of 2024, tripling over the past decade, as insurers increasingly rely on external managers.

The findings were reported in Clearwater Analytics’ “2025 Insurance Investment Outsourcing Report,” released Wednesday. Third-party insurance AUM stood at $1.7 trillion in 2015, according to the report. 

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The report also found $2 trillion in insurance assets under advisement by investment consultants, which Clearwater attributed to consultants working to expand their asset allocation into new categories of investors.

A significant majority of third-party insurance AUM is invested in fixed-income strategies. According to the report, 68.4% of assets are invested in public fixed income, 14.2% in private fixed income, 10.6% in public equities and 6.9% in private equity.

Despite being a small portion of insurer assets, private assets have surged in insurer portfolios. Over the past decade, different categories of private assets have grown to more than $800 billion from less than $50 billion.

“Private asset class managers are entering the insurance space and insurers are investing,” the report stated. “This shift toward private markets demonstrates insurers’ search for yield and portfolio diversification.”

The five largest insurance asset managers, according to the report, are BlackRock ($711.3 billion in insurance AUM), Goldman Sachs ($459.8 billion), Ostrum Asset Management ($260.4 billion), J.P. Morgan Asset Management ($231.5 billion) and Amundi Investment Solutions (174.9 billion). 

According to the report, Mercer advises as an investment consultant on $1.5 trillion in insurance assets—nearly all insurance assets under advisement. Mercer is followed by Mariner Institutional ($268.1 billion insurance AUA), Callan ($66.3 billion), NEPC ($57.9 billion) and Wilshire Advisors ($32 billion).

Clearwater presented the report as a resource for insurers to research asset managers and investment consultants. It provides investment information from more than 100 managers and consultants, including service offerings and AUM details.

Data & Research May 22, 2025

Concerned About Economic Conditions, Workers Decrease Savings

U.S. workers are reducing 401(k) and other savings amid concerns about inflation and heightened financial stress, according to several research reports.

Reported by

Due to concerns about inflation and a potential recession, many U.S. employees have reduced their retirement plan contributions, according to a recent study conducted by Morgan Stanley at Work.

About 39% of employees surveyed said they have reduced their 401(k) contributions in reaction to current economic conditions, and 67% of respondents said they are reducing their contributions across all savings accounts—up four percentage points since 2024.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

Increased Financial Stress

The Morgan Stanley at Work Employees Survey and HR Leaders Survey included responses from 1,000 U.S. employed adults and 600 human resource leaders for companies. The survey was conducted from February 21 through February 27.

In addition, 28% of surveyed employees said they are reducing contributions to their long-term savings, 26% are reducing contributions toward paying off debts and loans, and 25% are reducing their emergency savings and health savings accounts.

Participants also exhibited increased 401(k) trading activity after President Donald Trump’s sweeping tariff announcement triggered major losses across U.S. stock markets. But despite this “above-normal” trading activity, Alight found that less than 1% of participants’ assets had been traded in the first quarter of 2025, indicating that most participants are staying put.

HR leaders also expressed concern about retaining employees amid the economic strain, as 81% of those surveyed by Morgan Stanley said they worry employees will seek other job opportunities if their company cannot offer benefits to help better manage employees’ financial stress. At the same time, 91% of employees said they would feel more invested in staying at their company if it offered financial benefits that met employees’ specific needs.

For 2025, employers in the Morgan Stanley report said their three biggest financial priorities are hiring and retention (59%), technology investment (43%) and meeting regulatory requirements while maintaining private market investment liquidity (38%).

Need for ‘Comprehensive Retirement Guidance’

The Guardian Life Insurance Co. of America found, in its annual “Mind, Body, and Wallet” report, that for the first time, retirement-related challenges topped the list of financial concerns keeping Americans up at night.

Maintaining a source of guaranteed income in retirement, having retirement savings last as long as needed, and being able to count on receiving full Social Security benefits in retirement were among surveyed employees’ top concerns. Additionally, 73% of respondents said they have not saved enough for retirement, and 69% said they regret not starting to save sooner.

According to Guardian, 43% of Generation X adults self-reported low financial health, the lowest among all generations.

In order to “move the needle” for employees, the Morgan Stanley at Work study concluded that providing employees with financial planning tools is essential, and 69% of employer respondents said retirement planning assistance from financial professionals is a high priority.

Employees expressed that they are looking for more comprehensive retirement guidance, including access to a financial adviser and goals-based retirement investment planning. Morgan Stanley found that improvements in plan education are also needed, with only 34% of employees and 43% of HR leaders rating their company’s partcipant education program as “very effective.”

However, the Employee Benefit Research Institute’s recent Financial Wellbeing Employer Survey found that the cost of financial wellness initiatives may be a barrier for wider adoption by employers. For example, nearly three in 10 small employers cited costs to the employer as a challenge in offering financial wellness programs or products, and nearly 25% reported costs to their employees as a challenge.

Small employers also were more likely than large employers to report that their financial well-being initiatives were fully paid by workers, which EBRI argued may have an adverse effect on enrollment.

Inflation Concerns

Schroders’ 2025 U.S. Retirement Survey similarly revealed that employees are worried about the impact of rising prices on their savings, as 92% of respondents said they are concerned about inflation lessening the value of their assets—up from 89% in 2024—and 90% are worried about a major market downturn significantly reducing asset values.

The Schroders survey was conducted among 1,500 U.S. investors nationwide, ages 29 through 79, including 373 retired Americans. The survey was conducted from March 25 through April 17.

The majority of retirees surveyed (84%) said they wish they could better protect their savings from the effects of inflation.

“Rising prices on essentials like housing, food, and healthcare have significantly diminished the purchasing power and financial security of retirees,” said Deb Boyden, Schroders’ head of U.S. defined contribution, in a statement. “The uncertainty that’s currently plaguing so many retirees is a poignant reminder of the value of proper planning, products and personalized advice for a comfortable retirement.”

 

«