83% of insurance senior execs believe risk profiles will increase in year ahead

Written by Adam Cadle

25/09/2025

Eighty-three per cent of senior executives working in insurance asset management or in investment management firms supporting insurers believe risk profiles will increase in the year ahead, with 20% expecting a dramatic increase.

According to a report published by Ortec Finance, more than three quarters (77%) of the senior executives said an increase in capital to invest in their organisation is definite or likely in the year ahead. Just 2% think it will not happen.

Around 80% believe investment opportunities will be more attractive in private markets this year compared with last year with private debt, private equity and real estate the key areas for investment.

Furthermore, almost four out of five (79%) plan to increase both spending and effort in stress testing, scenario modelling and asset liability management (ALM), with 24% planning dramatic increases.

Spending on risk management is part of wider investment by insurers who are increasingly using AI to guide and improve their investment strategy. All firms surveyed expected their investment in AI to rise, with nearly half (49%) of respondents saying their organisation’s budget for AI applications will rise by 75% or more over the next 12 months.

Hamish Bailey, managing director UK, and head of insurance & investment at Ortec Finance, said: “The study indicates that insurers are preparing to take on greater investment risk, even as recession and liquidity concerns remain front of mind.

“We also observe a continuing optimism regarding opportunities in both private and public markets this year.

“In such an environment, the value of advanced analytical tools becomes even more important for those seeking to make well-informed, forward-looking decisions.”

Ortec Finance commissioned independent research company PureProfile to interview 100 senior executives working in insurance asset management or in investment management firms supporting insurers in May 2025. Survey respondents are located in the UK, France, Germany, Switzerland, Hong Kong, Malaysia, Singapore and Norway. Collectively the organisations they work for manage around $10.48trn.

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