Data integration is the top concern for Asia-Pacific (APAC) insurance asset managers, according to new research from Clearwater Analytics (CWAN), with just 42% rating their systems as excellent at handling it.
Worries revolve around managing data from third parties and from multiple internal and external systems, the research showed. Asset complexity – structuring and pricing of structured products, exotics, and other complex instruments – ranked second. Coverage and consolidation – aggregating risk exposures across portfolios, strategies, and trading desks to provide a firm-wide view – ranked third.
The challenges are expected to intensify, as 88% plan increase diversification over the next three years, with private market allocations expected to grow from 20% to 33% of holdings within five years. Sixty-six per cent are increasing their use of third-party asset managers, multiplying data complexity exponentially.
The survey also explored how insurers are responding to skills and capability gaps within investment management functions. The top strategies included recruiting people from a wider range of sectors or with more diverse perspectives; hiring more specialists in risk management roles; adding new tools or platforms to compensate for system deficiencies; increasing training levels; and outsourcing more to third parties.
Notably, more than nine in 10 (92%) respondents agreed (with 35% strongly agreeing) that insurers are now working with more asset managers than they were before, resulting in data arriving in multiple formats and making it more difficult for them to access the information they need.
“As insurers diversify their investment strategies and engage more external managers, the ability to unify, normalise and analyse data across disparate asset classes and systems has become critical,” said Shane Akeroyd, chief strategy officer and President of APAC at CWAN.
“With private markets set to represent a third of future allocations and 72% reporting increased risk profiles, firms can no longer afford the performance gaps we’re seeing in foundational capabilities.
“These findings reinforce what we see every day from organisations. There is an operational demand for integrated platforms that simplify complexity, strengthen risk oversight and scale seamlessly as portfolios grow and regulations evolve. With 96% expecting increased M&A activity, the firms that close these capability gaps first will have a significant competitive advantage as the sector consolidates.”
CWAN commissioned independent research agency Pureprofile to interview 150 senior executives working for the asset management arms of life/health insurers and general insurers based in APAC or third-party investment firms working for APAC life insurance carriers. The research was conducted in October 2025 in Australia, Hong Kong, and Singapore.
