In today’s competitive investment landscape, asset managers are increasingly targeting insurance companies as a key growth opportunity. With trillions of dollars in investable assets, insurance firms present a significant and steady pool of capital. However, serving these clients goes far beyond portfolio construction. Insurers operate under a unique set of constraints, driven by regulatory requirements, risk-based capital rules and detailed reporting standards governed by entities like the NAIC (National Association of Insurance Commissioners).
To grow insurance assets under management (AUM), asset managers are rethinking their strategies, from expanding their service offerings to modernizing their technology stacks.
Strategic Initiatives to Grow and Retain Insurance AUM
- Expanding into OCIO Services
Outsourced Chief Investment Officer (OCIO) solutions have become a powerful entry point for asset managers looking to deepen their partnerships with insurance companies. By taking on the investment decision-making, asset allocation and risk management responsibilities, OCIO providers embed themselves into the strategic and operational fabric of the insurance client.
This approach strengthens the client relationship while also helping asset managers capture a larger share of wallet. It shifts the dynamic from transactional asset management to long-term, consultative partnerships, creating stickier, more defensible revenue streams.
- Offering Investment Accounting and Reporting Services
One of the biggest challenges insurers face is producing accurate, timely and regulator-compliant reports, especially those required by the NAIC. Many asset managers are now offering integrated investment accounting and reporting solutions tailored specifically to insurers’ needs.
These services allow insurers to offload operational burdens while ensuring compliance with regulatory standards. For asset managers, providing these solutions increases client retention and creates new cross-sell opportunities. However, many legacy systems in use today were not built with insurance in mind, making this a critical area for investment and innovation.
- Acquiring Insurance Companies
Some large asset managers are taking the bold step of acquiring insurance businesses outright. These acquisitions offer instant access to large, long-duration asset pools and provide a predictable liability stream that matches well with long-term investment strategies.
This model also allows asset managers to leverage their existing capabilities in private credit, infrastructure and alternatives, all of which are asset classes that align with insurers’ appetite for yield and capital efficiency. However, managing an insurance entity comes with its own complexities, requiring deep regulatory expertise and operational discipline.
The Operational and Expertise Gap
While the strategic intent is clear, execution is proving challenging for many asset managers. Insurance companies require a level of data granularity, real-time visibility and compliance tracking that many traditional asset management platforms are not equipped to deliver.
In addition, insurance regulations differ materially from those in other sectors. Requirements around asset classifications, risk-based capital charges and Schedule D reporting demand specialized knowledge. Unfortunately, many asset managers still lack sufficient in-house insurance expertise, hindering their ability to truly serve these clients.
Bridging the Gap with Technology and Specialized Services
To overcome these challenges, insurance-focused asset managers are investing in purpose-built platforms that provide the data transparency, reporting accuracy and regulatory compliance insurers demand. These modern systems support:
- NAIC-specific reporting
- Real-time accounting feeds
- Risk-based capital analytics
- Asset-liability matching tools
By combining technology with domain-specific services, asset managers can offer true value-added partnerships rather than commoditized investment products.
The Path Forward
For asset managers, growing insurance AUM is no longer just about performance; it’s about being a trusted operational and regulatory partner. Success will come to those who invest in the right people, processes and platforms to support the distinct needs of insurance clients.
By aligning their services with the specialized demands of the insurance industry, asset managers can differentiate themselves, deepen client relationships and unlock sustainable revenue growth in an increasingly complex market.
Contact us to learn more about how SS&C can help you modernize.
