Go-To Resource for Insurance Firms Outsourcing
Investment Management Reveals Market Trends Toward Private Asset
Classes
BOISE,
Idaho, May 28, 2024 /PRNewswire/ -- Clearwater
Analytics (NYSE: CWAN), a leading worldwide provider of SaaS-based
investment management, accounting, reporting, and analytics
solutions, today announced the release of the 2024 Insurance
Investment Outsourcing Report (IIOR). The eleventh annual 'Yellow
Pages' of insurance-focused asset managers includes 70 asset
managers and 12 investment consultants, the latter which are new
for this year.
Clearwater partners with DCS
Financial Consulting, who designs and administers the IIOR. Each
participant has a profile page with robust details on AUM, types of
assets managed, as well as insurer-specific services offered.
Additionally, 14 summary analyses provide users with rankings of
participants in different asset classes and other useful insights.
This report is highly regarded in the industry and leveraged by
numerous insurers to identify asset managers and consultants who
focus on their space.
The report shows the outsourcing trend continues to grow with
$3.6 trillion in insurance AUM
reported, and over $900 million of
consultant assets under advisement. When the report was first
issued in 2014, $1.4 trillion in AUM
was reported. Download the report today.
Top findings of this year's global report:
- More managers enter the insurance asset management business
each year. Over the last three reports, 22 new managers joined
the IIOR.
- Many of the new managers bring private credit and alternative
capabilities supporting the trend of insurers adding these
strategies to their investment programs.
- Private asset classes reported grew to $602 billion, up 40% over the last two years
while public asset classes were flat over the same period
- Investment consultants have become more prominent in the space,
with many helping insurers extend their investment strategy into
private asset classes.
- While there is a lot of activity in private asset classes,
public fixed income continues to dominate outsourced assets with
70% of AUM reported in the category.
"Insurer investment programs have grown in sophistication since
the 2008 financial crisis and the prolonged low-rate environment
convinced many insurers to look beyond investment grade bonds,"
said Sandeep Sahai, CEO at
Clearwater Analytics. "As investors diversify to increasingly
complex asset types, they invest the time to understand these asset
classes with the support of experts represented in our guide. We
have seen increased alternative investments among the 800-plus
insurance clients on the Clearwater platform and their money
managers."
"The trend of insurers moving towards external asset management
speaks volumes about the expertise and scale that external managers
offer," said Steve Doire, Strategic
Advisor at Clearwater Analytics and owner of DCS Financial
Consulting. "The sheer variety of specialty asset managers now
available to insurers is a testament to the evolution of the
industry. The 7% YoY growth in the aggregate third-party insurance
general account AUM shows the market is growing in complexity and
sophistication, and the readiness for investors to explore and
capitalize on diverse investment options."
About Insurance Investment Outsourcing Report
The Report, in its 11th year running, profiles investment
management firms who offer the specialized resources and expertise
required to manage insurance companies' investment assets. This
year's report includes investment consultants for the first time.
The report can be downloaded here.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading
SaaS solution, automates the entire investment lifecycle. With a
single instance, multi-tenant architecture, Clearwater offers award-winning investment
portfolio planning, performance reporting, data aggregation,
reconciliation, accounting, compliance, risk, and order management.
Each day, leading insurers, asset managers, corporations, and
governments use Clearwater's
trusted data to drive efficient, scalable investing on more than
$7.3 trillion in assets spanning
traditional and alternative asset types. Additional information
about Clearwater can be found
at clearwateranalytics.com.
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SOURCE Clearwater Analytics