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Laxman Pai, Opalesque Asia:

89% of the insurance executives overseeing a collective $29 trillion in assets say they plan to invest more in private markets during the next two years, according to a report.

Within private assets, they expressed the most enthusiasm for direct lending, with 60% of those surveyed planning to boost allocations, according to a new survey of the industry by BlackRock.

Of 378 senior insurance executives surveyed by BlackRock, 34% said they'll pull back on private equity. A similar percentage of executives said they'll trim bets on real estate equity and debt.

"Increasing their allocation to private markets was the top priority for 89% of insurers, with 60% planning to focus those allocations on direct lending," it said. More than one-third of respondents said they planned to cut back on allocations to real estate debt, real estate equity, and private equity.

Inflation remains front of mind for insurers, with 71% of respondents selecting it as the biggest economic surprise for the second year in a row. Recession risk, chosen by 59%, was the most selected macroeconomic concern.

Over half of insurers (55%) globally believe that further financial cracks are most likely to occur in the banking sector, indicating concerns over the stability and health of financial institutions - this rises to 77% for North American respondents. In APAC, 55% of respondents cite concerns over residential real estate.

The report also revealed th......................

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