Go-To Resource for Insurance Firms Outsourcing
Investment Management Delivers Additional Insights
BOISE,
Idaho, May 18, 2023 /PRNewswire/ -- Clearwater
Analytics (NYSE: CWAN), a leading provider of SaaS-based
investment management, accounting, reporting, and analytics
solutions, today announced the release of the 2023 Insurance
Investment Outsourcing Report (IIOR). The tenth annual 'Yellow
Pages' of insurance-focused asset managers contains details on
asset classes and AUM, insurance client types and counts, as well
as related services asset managers provide to
insurers. Sixty-seven managers participated in the report, up
from 58 last year. The report shows the outsourcing trend continues
and grows as investors search for yield. Download the report
today.
Top findings of this year's global report:
- Total insurance AUM reported by the managers was $3.2 trillion. This amount was slightly down from
last year, attributed to the market declines of 2022.
- Despite less AUM, growth in the use of outside managers
continued as reported total client count across all managers grew
7% to 5,800.
- Fixed income continues to be the dominant allocation among the
insurance sector, representing over 70% of investments reported by
managers.
- Many of the participating managers offer full-service
capabilities managing this 'core' strategy along with 'solutions'
capabilities that help insurers devise overall asset allocation
strategies in the context of the unique accounting, regulation, and
rating agency matters of insurers.
- Most of the new participating managers bring private asset
class capabilities, a trend we have seen in recent years as
insurers expand their asset allocation. While insurer absolute
allocations to privates is modest, the percent increases in
reported AUM of certain strategies was significant.
-
- PE/VC up 79%
- Structured private debt up 46%
- Corporate middle market debt up 24%
"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 invested 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
featured here."
"When it comes to using third-party investment management
solutions, insurers continue to lean on external managers as a
critical resource," said Steve
Doire, Strategic Advisor at Clearwater Analytics and owner
of DCS Financial Consulting. "Many insurers have recognized the
talent and services that the scale of external managers brings, and
they are clearly taking advantage of their expertise."
Additional details from this year's IIOR:
- Looking back on the reports over the past 10 years, the top 40
outsourced investment managers in the survey reported a huge
increase in total AUM managed for insurers, from $1.3 trillion in 2012 to $3 trillion in 2022.
- This year's IIOR manager profiles contain 14 service categories
and indicate which insurance asset managers deliver ESG strategies,
provide value-added services, specialize with certain types of
insurers such as P&C, understand book yield, and can project
investment income, and more.
- The report contains analysis and ranking across managers, as
well as detailed 'Manager Profiles' providing firm specific details
and contact information.
About Insurance Investment Outsourcing Report
The Report, in its 10th year running, profiles investment
management firms who offer the specialized resources and expertise
required to manage insurance companies' investment assets. 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
$6.4 trillion in assets spanning
traditional and alternative asset types. Additional information
about Clearwater can be found
at clearwateranalytics.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/clearwater-analytics-publishes-2023-insurance-investment-outsourcing-report-301827963.html
SOURCE Clearwater Analytics