Marsh Survey Reveals That Insurers’ Private Credit Appetite Continues to Grow, but Discipline Remains Paramount

Marsh (NYSE:MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, today released the findings of its 2026 Global Insurance Investments Survey, which shows that insurers’ demand for private credit remains strong but increasingly selective.

More than half (57%) of the insurers surveyed plan to increase their exposure to private credit in the next 12 to 24 months, making it the leading area of planned investment growth, ahead of public investment-grade fixed income, which was cited by 48% of insurers. This is in sharp contrast to the Mercer and Oliver Wyman 2024 Global Insurance Investments Survey, when 37% and 32% of insurers planned to increase allocations to fixed income and private credit, respectively.

Insurers’ private credit appetite is more focused on the rapidly expanding, investment-grade segment of the market. Insurers are particularly interested in allocating to investment-grade direct lending and private placements (40%) and investment-grade structured credit, asset-based finance, net asset value (NAV) lending, and fund finance (38%).

"Private credit is a compelling opportunity for insurers, especially in the asset-backed space. Insurers can diversify away from corporate risk while realizing meaningful yield pickup over similar rated, investment-grade public market bonds," said David Morrow, Mercer’s Global Insurance Proposition Leader.

Appetite for private credit remains particularly strong in North America. In the United States, 65% of insurers surveyed plan to increase allocations, while Canada shows stronger demand, with 74% of respondents planning to increase allocations. Only about half of insurers based in Europe (51%) and the UK (46%) plan to increase allocations.

Interest in private credit is more pronounced at the larger end of the market, with 81% of insurers with more than $25 billion in assets planning to increase allocations compared with 46% of those with less than $25 billion. Life insurers (73%) were more likely to allocate than Health (56%) and P&C (40%).

Attuned to private credit’s risks

Insurers are acutely aware of the risks associated with private credit. The most cited concerns with the asset class are a reduction in illiquidity premium and tighter spreads (66%), signaling that investors want to ensure they are being adequately compensated for private credit’s liquidity constraints. The other most cited areas of caution include deteriorating underwriting standards or covenants (54%) and rising defaults, spreads, or payment-in-kind (PIK) structures (51%), which would point to borrower distress or deteriorating lending standards as the market matures.

"Capitalizing on the benefits of private credit will require insurers to have a rigorous process for manager selection. It will be important for them to choose managers who demonstrate sourcing, underwriting, portfolio construction and workout capability to navigate the next phase of the credit cycle," said Amit Popat, Mercer’s Global Head of Financial Institutions.

The private markets capability gap

The survey shows a clear gap between insurers’ interest in private markets and their readiness to act on opportunities. Only 30% of respondents report having "most" of the private markets capabilities they need to invest with confidence, while 29% have only "some" of the capabilities needed.

This lack of resources limits insurers' ability to allocate, sufficiently diversify private market allocations, and maintain appropriate allocations through continued due diligence. As appetite grows, insurers may look to investment partnerships to help them decipher the market and provide expertise in evaluating managers, modeling cash flows, understanding capital treatment, managing liquidity, and supporting execution.

"Even the largest insurers recognize they don’t have all the capabilities or origination capacity in-house and are looking to outside private credit managers to help fill gaps and boost risk-adjusted yields," said Josh Zwick, a Partner in Oliver Wyman’s Insurance and Asset Management Practice. "Everyone is looking to build out their capabilities, and that often means finding partners that can help navigate the complexities across different parts of the sprawling private credit market."

AI is playing a limited role in insurers’ investment operations

The capability gap is showing up in another way: how insurers are using AI. More than half of insurers (54%) say they are not using AI in a meaningful way. Fewer than a third (29%) use it to analyze alternative investment data and research. The most immediate AI applications in investment teams are data integration, scenario generation, document review, manager monitoring, and risk analysis.

Scale is a major determinant of AI use. Most (75%) of those managing over $100bn report meaningful use of AI, yet only about 10% of those managing less than $1bn report the same.

About the Marsh 2026 Global Insurance Investments Survey

The 2026 Global Insurance Investment Survey was conducted between March and April 2026. The survey includes the views of 123 insurers from 24 countries with over US$4 trillion in total investment assets. Marsh provides insurers with reinsurance, capital, people, investments and management consulting advice and solutions through its Guy Carpenter, Mercer and Oliver Wyman businesses.

About Marsh

Marsh (NYSE:MRSH) is a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information, visit corporate.marsh.com, or follow us on LinkedIn and X.

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Media contact:

Amelia Woltering

+1 212 345 0864

Amelia.Woltering@marsh.com