Clearwater Analytics, a provider of investment accounting, reporting and analytics solutions, reports that Asia-Pacific insurers are rapidly increasing their commitments to private markets.
Executives surveyed expect about a third of their total $3.8 trillion in assets to be allocated to private debt, private equity, infrastructure and other alternatives within five years, up from about 20% today, according to Clearwater Analytics.
Clearwater Analytics shows that the systems needed to support this transition are not evolving fast enough.
The company found that 93% of respondents said legacy technology has constrained their organizations even as they move to more complex asset classes that require greater operational capabilities. Clearwater Analytics highlights that the areas experiencing the greatest growth are also those with the greatest lack of existing infrastructure.
“Companies that will lead the next phase of growth in Asia Pacific are already asking the right questions: does our infrastructure match our ambitions, and does our scale allow us to compete as this market becomes more complex?” added Shane Akeroyd, chief strategy officer and president of Asia Pacific at Clearwater Analytics. “Those who are closing the capability gap now are not just solving technical problems. They are positioning themselves to lead future developments.”
Clearwater Analytics has identified several areas where the gap between ambition and capability is most pronounced. The company noted that data integration underpinning investment operations remains a challenge, with only 42% of companies rating their systems as excellent.
Clearwater Analytics describes asset complexity as central to modern portfolio construction, but it is the weakest performing area, with only 23% of firms feeling confident in their systems. Regulatory reporting continues to dominate technology spending priorities, ranking significantly higher than other areas, but less than half of companies believe their compliance systems are very effective.
Clearwater Analytics also reports that cross-asset risk aggregation is under-resourced, with 86% of respondents highlighting gaps, with many third-party firms observing a decline in risk visibility over the past two years.
The company expects consolidation activity to increase in the region. The company reports that 96% of insurance companies expect domestic M&A activity to increase over the next three years. Against this backdrop, Clearwater Analytics highlights that operational strength is becoming a key competitive factor, with companies that can address capability gaps better positioned to lead integration, while those that cannot address capability gaps may be targeted.
Clearwater Analytics observes early trends of improvement, with 56% of insurers planning to expand their use of data analytics in the next 12 months and 55% intending to adopt artificial intelligence and machine learning. However, Clearwater Analytics also found that resistance to change remains widespread, with 95% of respondents saying the industry has been slow to adapt, which continues to hinder progress.
The full report includes detailed insights into Hong Kong, Singapore and Australia, as well as a framework to help businesses assess their operational readiness compared to peers, Clearwater Analytics noted.
The Asia Pacific Insurance Report 2025-2026 is based on a survey of 150 senior executives from life insurance companies, general insurance companies and third-party investment companies in Hong Kong, Singapore and Australia, according to Clearwater Analytics.
Clearwater Analytics noted that these organizations collectively manage $3.8 trillion in assets, and participants include C-suite executives and senior investment and operating professionals across the region.
