Concerns over the global economy have reduced insurers’ investment risk appetite, according to an annual survey by asset manager BlackRock.

Only 12% of insurers worldwide intend to increase their investment exposure, compared with 19% in 2022 and 28%-60% in the period between 2018 and 2021.

About 63% rank inflation as the leading macro threat, followed by geopolitical risk, high interest rates, regulatory developments and recession danger.

“The story of 2025 is one of caution amid volatility, but also of conviction in the long-term opportunities private markets can offer,” BlackRock’s financial institutions group global insurance strategist Mark Erickson said.

“Insurers are navigating the environment with discipline, while many are embracing new operating models, such as hybrid solutions to access private assets, and adopting investment, risk and AI software to strengthen their portfolios.”

The survey drew responses from 463 insurance investment professionals who oversee $US23 trillion ($35 trillion) of assets under management across 33 economies.

Public assets continue to be the most important allocation for insurers, with 21% planning to increase holdings in this area, compared with 6% who intend to invest less.

Among Asia-Pacific insurers, about 77% plan to maintain current investment risk settings, while 13% are looking to increase them.

“Asia-Pacific insurers stand out for their focus on multi-alternative strategies, which can offer a more efficient path to portfolio diversification across private assets,” BlackRock deputy head of Asia-Pacific and head of APAC institutional business Hiro Shimizu said.

“As insurers across the region navigate ongoing market volatility, this emphasis on diversification underscores their commitment to long-term resilience and growth.”