Insurers plan to increase private credit allocations despite rising concerns over market risks

Insurers are ramping up their investments in private credit despite mounting worries about the quality of underwriting, higher default rates, and discrepancies in asset valuations, according to recent research from Marsh McLennan. This move suggests a strategic shift in risk appetite among insurers, potentially signaling confidence in the sector's growth potential, even as analysts express caution about the associated risks. The trend underscores a broader debate about how insurers balance profitability with prudent risk management amid volatile market conditions.