APAC insurers’ appetites for private markets are set to dwarf those for public markets over the next two years, as investment teams are drawn to diversification benefits and return potential.
More than nine out of 10 (93%) of insurance asset management executives overseeing $3.8 trillion in assets across Hong Kong, Singapore, and Australia participating in research with Clearwater Analytics, believe the most attractive investment opportunities today lie in private rather than public markets.
Today, participating firms manage an average of 20% of insurance-focused assets in private markets. Within five years, this percentage is forecast to rise to 33%.
Almost two-thirds (65%) of respondents say they will dramatically increase allocations to private equity and venture capital in the next 24 months, versus just 19% who say the same for public equities (see below table).
Respondents point to diversification as the primary motivation, with 88% expecting diversification benefits to increase as allocations rise.
Yet APAC’s insurers identify notable operational complexities of moving into these new asset classes.
Historically, private markets sat on the periphery of insurance portfolios, constrained by liquidity, valuation complexity, and regulatory scrutiny. Consequently, firms must now focus on how to scale exposure without undermining governance, transparency, or control.
Two out of five (41%) executives surveyed say there are increased complications from a legal and compliance perspective from investing in private markets, while 29% say viewing private market assets alongside traditional assets is challenging.
These concerns strike at the heart of insurers’ ability to demonstrate solvency, manage capital efficiently, and explain risk to boards and regulators.
Nearly all (96%) of respondents expect increased M&A activity in the insurance sector over the next three years, which brings with it additional complexity.
Those firms able to scale private market exposure with strong data, governance, and reporting frameworks are likely to integrate acquisitions more smoothly.
Meanwhile, firms left wanting could find their private market allocations prove a drag on flexibility rather than a source of advantage.
More than 90% of the APAC insurers surveyed say their systems are effective at handling new asset classes, and a similar proportion report few difficulties determining fair value for private assets.
But such confidence cannot detract from the reality that many insurers’ valuation, compliance, and reporting processes often sit across fragmented systems and teams. As private market exposure grows, that dislocation may become more visible and potentially more damaging.
The research shows that firms are clearly convinced of the long-term attractiveness of private markets, but that conviction brings new demands. Legal and compliance considerations are rising quickly, and insurers need better ways to assess private assets alongside traditional investments.
Consequently, while private markets may promise long-term value, they demand a level of operational maturity that many insurers are still building.
And as insurers are judged less on their ability to access private assets and more on their ability to manage them, those firms that integrate robust platforms and operating models will be best placed to realize their ambitions.
| Percentage of APAC insurance executives expecting allocation changes over the next 24 months: |
| Asset class | Increase dramatically | Increase slightly | Stay the same | Decrease |
| Public market equities | 19% | 63% | 6% | 12% |
| Public fixed income | 43% | 41% | 11% | 5% |
| Private equity and venture capital | 65% | 26% | 8% | 1% |
| Private credit | 51% | 41% | 8% | Zero |
| Hedge funds and alternative strategies | 41% | 47% | 12% | Zero |
| Real assets | 45% | 43% | 12% | Zero |
Source: Clearwater Analytics third-party APAC Insurance Report 2025
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