APAC insurers identify room for improvement in their ALM systems

Written by Adam Cadle

11/12/2025

Almost one in 10 (9%) APAC insurers have said it is difficult for their ALM systems to handle changes in asset allocation and new data sources, new research from Clearwater Analytics has revealed.

Its study with insurance asset management executives at firms with total assets under management of $3.823trn in APAC found just 17% said their ALM systems can very easily cope with diversification and new instruments.

When asked to identify the main drivers of increased technology spending on asset liability management, insurers pointed to regulatory demands, including heightened requirements for stress testing, solvency reporting, and risk disclosures.

The shift towards illiquid, esoteric, or alternative asset classes that require more sophisticated risk models was ranked second. In third place was the need to incorporate advances in computing, such as cloud scalability, sophisticated modelling, and AI, for more actionable insights on risk and capital efficiency.

Finally, insurers participating in the survey say strengthening scenario, stress testing, correlation, and other calculations across asset classes is driving up ALM expenditures.

Looking at the priorities for technology spend over the next 12 months, more than half (56%) of insurers will focus on the increased use of data analytics, while 55% will integrate artificial intelligence and machine learning technology.

Improving the customer experience at the front end is a priority for 54% of insurers surveyed; 51% will look at improving portfolio management systems; 41% cited implementing or expanding cloud technology; and 31% will consider greater automation of reporting.

Shane Akeroyd, chief strategy officer and President of Asia Pacific at CWAN, said: “Insurers recognise that modern ALM requires speed, precision, and integration that legacy systems simply can’t deliver anymore. The risks of not investing and improving ALM systems are manifold, and APAC insurers rightly appreciate the importance of keeping up with regulations.

“Improving ALM makes a real difference in reducing errors, seizing opportunities, and ultimately being more competitive.”

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