A new Clearwater Analytics survey shows 67% of APAC insurers plan to increase their use of external asset managers as private markets grow and technology reshapes investment operations.
APAC insurance asset managers are preparing for a major reallocation of investment responsibilities, with new research from Clearwater Analytics (NYSE: CWAN) revealing a decisive turn toward external management as the private markets landscape accelerates.
The study, conducted with senior executives overseeing a combined $2.6 trillion in assets, found that insurers currently outsource an average of 35% of their portfolios, with all surveyed firms delegating at least a portion of their funds to external specialists. External management levels today range from 24% to 45% across Hong Kong, Singapore and Australia.
Looking ahead five years, 67% of respondents expect a greater share of assets to move to outside managers, compared to just 22% who anticipate a shift back in-house. Only 11% foresee no change. This signals a structural evolution in how insurers engage with increasingly complex asset classes, particularly private markets, which are expected to continue expanding in both scale and strategic importance.
Importantly, the shift is driven not by cost-cutting or talent gaps, but by higher-value considerations. Executives ranked reputation and increased acceptance of third-party managers as the top drivers, followed by improved transparency, reporting, analytics, and better control over investment models and risk factors. Visibility into portfolio data enabled by modern investment platforms is further accelerating comfort with external oversight.
“The use of third-party asset managers across APAC is set to accelerate as insurers become increasingly comfortable with the practice and seek specialised expertise for complex private market investments,” Shane Akeroyd, Chief Strategy Officer and President of Asia Pacific at CWAN, said. “It is striking that the trend is not mainly being driven by a desire to cut costs or because firms lack in-house expertise,” added Akeroyd. “Generally, the shift is being driven by technology and the growing use of platforms which enable insurers to have the control and transparency they need. With 96% expecting increased M&A activity and private markets set to represent a third of allocations, external expertise becomes a competitive advantage.”
As 96% of respondents expect increased M&A activity and private markets move toward representing a third of allocations, external expertise is rapidly becoming a competitive advantage.
