Bitcoin’s recent record valuations were a trigger for many firms, with 96% saying it prompted renewed discussions around digital assets. Nearly nine in ten insurers view digital asset adoption as a strategic priority. A Brava Finance study of 25 insurance asset managers across markets including the US, UK, Singapore, Hong Kong and parts of Europe found that 88% now see digital asset adoption as a strategic priority.
More than half, or 52%, said it is an urgent and immediate priority for their organisations. About 88% hold digital assets in their portfolios, with 44% allocating 1%–2% and 36% allocating 2%–5%. All respondents said they plan to increase allocations over the next 12 months.
Around 44% expect allocations to rise to between 5% and 10%, while another 44% plan to increase exposure to between 10% and 25%. Digital assets are increasingly viewed as a diversification tool, with 92% saying they are an effective way to diversify portfolios. The main drivers include the potential to improve risk-adjusted returns, cited by 72%, and the search for alternative sources of yield, cited by 40%.
Bitcoin’s highs coincide with concerns about volatility, with 96% worried about Bitcoin falling from recent highs and 88% exploring alternatives such as stablecoins. The biggest adoption challenges cited are custody and security, regulatory uncertainty, market volatility, and ESG and reputational risks. Internal hurdles remain significant, including governance approvals, unclear operating processes, and concerns about vendor reliability.
Client resistance is not seen as a major issue, with 92% saying clients and trustees are actively pushing them to consider digital asset strategies. The findings underscore growing institutional interest in digital assets despite volatility concerns and point to a continued push toward expanding exposure in the coming year.
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