Data complexity and asset intricacy in insurance sector are outpacing system capabilities, creating operational gaps that could define competitive advantage, finds APAC CWAN study.
Insurance asset managers in Asia Pacific are facing a growing data challenge, with integration across multiple internal and external sources emerging as the most pressing concern, according to new research from Clearwater Analytics (CWAN). The survey, covering 150 executives at firms managing $3.823 trillion in assets, reveals a stark disconnect between the importance of data management and confidence in system capabilities.
While data integration ranks as the top challenge, only 42% of respondents rate their systems as excellent at handling it. Asset complexity, encompassing structured products, exotics, and other sophisticated instruments, ranks second in importance but received the lowest performance score, with just 23% confident in current capabilities. Coverage and consolidation, which involves aggregating risk across portfolios and trading desks, comes in third.
The survey shows near-universal agreement on the operational strain created by multiple formats and sources: 149 of 150 executives acknowledged that data from external managers complicates access to critical information. As firms diversify, these pressures are expected to intensify. 88% plan to increase diversification over the next three years, with private market allocations projected to grow from 20% to 33% of holdings within five years. At the same time, 66% are expanding use of third-party managers, further multiplying data complexity.
To address capability gaps, insurers are employing a mix of strategies, including recruiting talent with broader experience, adding specialized risk management roles, implementing new tools and platforms, increasing training, and outsourcing to third parties. 92% of respondents agreed that engaging more asset managers increases data complexity, with 35% strongly agreeing.
“As insurers diversify their portfolios and work with more external managers, the ability to unify and analyze data across disparate asset classes has become critical,” said Shane Akeroyd, Chief Strategy Officer and President of Asia Pacific at CWAN. “With private markets set to represent a third of future allocations and 72% reporting increased risk profiles, firms can no longer tolerate gaps in foundational capabilities.”
Akeroyd added, “Integrated platforms that simplify complexity, strengthen risk oversight, and scale with evolving portfolios and regulations will define competitive advantage. The firms that close these capability gaps first will be best positioned as M&A activity accelerates.”
These findings are based on an independent survey commissioned by Clearwater Analytics and conducted by Pureprofile in October 2025, which interviewed 150 senior executives from the asset management arms of life, health, and general insurers, as well as third-party investment firms serving APAC life insurance carriers, across Australia, Hong Kong, and Singapore.
