At the Intersection of Insurance and Asset Management, Talent Becomes the Ultimate Differentiator

The most disruptive force in the growing convergence of insurance and asset management isn’t capital. It’s talent.

As firms expand beyond their traditional boundaries, they need executives who can balance regulatory scrutiny, investment complexity, and new client expectations. And board members are discovering that governance that worked well in a more siloed industry doesn’t pass muster in firms that house risk and return under one roof.

This convergence of insurance and asset management is not just a passing trend. Whether fueled by acquisitions, partnerships or new entrants to the market, insurance and asset management are coming together more often than ever before. The strategic reasons behind these moves are clear: scale, diversification, and stability. But what does this mean for talent at both the executive and board levels?

Before we get into the talent, it is important to set the context on the changes that are taking place:

Acquiring asset managers to diversify their portfolios and capture investment alpha. In a landscape shaped by compressed fees, evolving regulations, and digital disruption, these transactions offer strategic growth—but also introduce operational and cultural complexity.
In the United Kingdom, for example, there has been a surge in insurance companies allocating investment in asset management, which specialists are saying could lead to the next wave of consolidation. This trend is also perceived in North America and Asia, where insurers are increasingly betting on alternative investments to boost returns amid low interest rates and market volatility. A few recent moves by insurers using this strategy include MetLife’s acquisition of PineBridge Investments in a $1.2 billion deal, signaling a strong push to expand their asset management footprint in high-growth markets. Generali and Groupe BPCE announced a joint venture to create Europe’s largest asset manager with €1.9 trillion in assets, ranking #1 in insurance asset management by AUM worldwide. Another large North American headquarterd insurance company with global scale has recently consolidated its existing asset management businesses under a new unified arm - a strategic shift to be recognized as both an asset manager and an insurance company. Moves like these reflect a broader industry trend toward convergence and strategic growth.

Using insurance capital as a route to greater scale and long-term security. By aligning with insurers, they gain access to permanent capital, more predictable inflows, and the ability to develop long-dated investment products. But integration requires a shift in mindset—particularly around product development, compliance, and enterprise risk.

Brookfield’s recent pivot serves as a good example. Once seen as purely an asset manager, the firm has rebranded itself as an “investment-led insurer,” which integrates insurance capital into its growth model. Moves like this underscore how quickly firms are redefining themselves at the intersection of stability and ambition.

Over the past five years, private equity firms have accelerated their entry into the insurance sector by acquiring life and annuity carriers, reinsurers, and asset managers and are building vertically integrated platforms. The major appeal of these deals is long-duration liabilities, which provide stable, scalable capital for alternative investments. There has also been a shift toward creating de novo institutions that combine underwriting, capital management, and investment capabilities under one roof.

In addition, what was once niche—alternative assets—has become central to insurers’ investment strategies, placing pressure on legacy asset managers and insurance leaders alike to develop new capabilities—particularly in risk, operations, and digital client engagement.

As these business models converge, leadership demands are evolving. Leadership transitions, particularly from asset management into insurance, have become more complex. Executives from entrepreneurial asset management environments often need structured support to succeed in capital-intensive, heavily regulated, matrixed insurance companies. These moves are rarely seamless; they require time, coaching, and cultural translation.

The skill sets differ significantly too. Insurance leaders prize liability-driven investing, regulatory rigor, and long-termism while asset management leaders focus on agility, innovation, and alpha generation. Bridging these mindsets and translating priorities across disciplines is now a core leadership need.

At the same time, new roles are emerging in areas such as data science, cybersecurity, and digital marketing. Senior executives must lead across digital and physical channels, serve increasingly sophisticated clients, and create seamless experiences across different in-person or digital channels.

To ensure this pool of combined-sector talent grows, firms must identify high-potential leaders and give them early exposure to cross-sector challenges. They also must expand their talent aperture to consider candidates from adjacent industries—those who bring depth in client engagement, operational complexity, and change leadership. Cultural integration and a strong onboarding strategy have never been more critical.

CEO succession is no longer limited to traditional insurance veteran candidates. In many cases, to meet the sector’s challenges, CFOs, COOs, or external candidates with blended experience are emerging as strong contenders. As consolidation continues, leadership teams must reflect this increased complexity—with succession planning that looks beyond traditional profiles and focuses on this blend of potential and experience.

Forward-looking nominating and governance chairs are rethinking what qualifies a director to serve on a board in this hybrid space. Experience in both sectors and with an understanding of the broad spectrum of asset management, including alternative investments is becoming more sought after. Those who have navigated the intersection of insurance and asset management and can balance the need for risk and regulatory with growth and innovation are differentiated. Collaboration, cross-functional agility, and comfort with complexity are taking precedence over traditional check-the-box qualifications.

Compensation structures also reflect these differences. Asset managers are accustomed to performance fees and equity incentives; insurers often emphasize long-term stability, capital efficiency, and risk alignment. We are seeing that boards are increasingly rethinking compensation structures to reflect both philosophies—building hybrid models that reward long-term enterprise value creation across both growth and prudence.

Whether you’re an insurance company acquiring an asset manager or an asset manager positioning for acquisition, your leadership bench and boardroom must reflect the convergence already underway. Organizations that proactively embrace hybrid experience—blending insurance and asset management expertise—will be better positioned to navigate complexity, drive innovation, and deliver long-term value.

We are advising more clients on this shift and seeing tangible results where boards and executive teams are intentionally building for the future. The convergence is not a passing phase—it’s a structural evolution.

We are working with leadership teams and boards at the forefront of this convergence. If your organization is navigating the intersection of insurance and asset management, let’s have a deeper conversation about how your leadership architecture can evolve to meet the demands of this new reality.