Clearwater Analytics, a provider of investment accounting, reporting and analytics solutions, reports that insurers across Asia Pacific are increasing their commitments to private markets at pace.
According to Clearwater Analytics, executives surveyed expect that within five years roughly one third of their combined $3.8 trillion in assets will be allocated to private debt, private equity, infrastructure and other alternatives, compared with around 20% today.
Clearwater Analytics indicates that the systems needed to support this shift are not evolving quickly enough.
The company finds that 93% of respondents say legacy technology is already constraining their organisations, even as they move towards more complex asset classes that require greater operational capability. Clearwater Analytics highlights that the areas seeing the fastest growth are also those where existing infrastructure is least equipped.
“The firms that will lead the next phase of growth in Asia Pacific are already asking the right questions: does our infrastructure match our ambition, 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, Clearwater Analytics. “Those that close the capability gap now are not just solving a technology problem. They are positioning themselves to lead what comes next.”
Clearwater Analytics identifies several areas where the gap between ambition and capability is most evident. The company notes that data integration, which underpins investment operations, remains a challenge, with only 42% of firms rating their systems as excellent.
Asset complexity, described by Clearwater Analytics as central to modern portfolio construction, is the weakest-performing area, with just 23% of firms confident in their systems. Regulatory reporting continues to dominate technology spending priorities, ranking significantly higher than other areas, yet fewer than half of firms consider their compliance systems to be highly effective.
Clearwater Analytics also reports that cross-asset risk aggregation is under-resourced, with 86% of respondents highlighting gaps and many third-party firms observing a decline in risk visibility over the past two years.
The company expects an increase in consolidation activity across the region. The company reports that 96% of insurers anticipate a rise in domestic mergers and acquisitions over the next three years. In this context, Clearwater Analytics stresses that operational strength is becoming a key competitive factor, with firms that address capability gaps better positioned to lead consolidation, while those that do not may become targets.
Clearwater Analytics observes early movement towards improvement, with 56% of insurers planning to expand their use of data analytics over the next 12 months and 55% intending to adopt artificial intelligence and machine learning. However, Clearwater Analytics also finds that resistance to change remains widespread, with 95% of respondents describing the industry as slow to adapt, which continues to hold back progress.
Clearwater Analytics states that the full report includes detailed insights for Hong Kong, Singapore and Australia, along with a framework to help firms assess their operational readiness against peers.
According to Clearwater Analytics, the 2025–2026 APAC Insurance Report is based on a survey of 150 senior executives from life insurers, general insurers and third-party investment firms across Hong Kong, Singapore and Australia.
Clearwater Analytics notes that these organisations collectively manage $3.8 trillion in assets and that participants include C-suite leaders as well as senior investment and operations professionals across the region.
