NEW YORK, July 16, 2026--(BUSINESS WIRE)--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.