Insurers across the APAC region need to bridge the gap between their digital ambitions and their technological reality.
Our new research with executives at APAC insurers responsible for managing a combined $3.823 trillion in assets reveals the challenges firms face in moving from legacy systems, heavily reliant on manual intervention, to seamless automated processes fit for the digital age.
Nearly nine out of 10 (87%) of insurers believe they are ahead of their competitors in digital transformation, yet 93% of respondents say legacy systems are holding them back.
And those challenges escalate with scale. Ninety percent of smaller firms (AUM $1–$5bn) report being constrained, a figure that rises to 97% among the largest firms (AUM $50bn+).
Larger organisations, which stand to benefit the most from modernisation, are also the ones most burdened by outdated systems and processes. The finding underlines a structural challenge: transformation gets harder, not easier, as portfolios and operations expand.
Almost three-quarters (73%) of respondents say their organisation is too focused on short-term pressures. At the largest firms, this climbs to a striking 90%.
This tension between operational firefighting and long-term strategic planning is a recurring theme, and it is one exacerbated by rigid systems, fragmented workflows, and the increasing complexity of insurance portfolios.
One of the most pressing concerns is the struggle to hire and retain people with the skills required to maintain old systems.
More than half (54%) of APAC insurers say hiring talent to manage legacy tech is a problem, while 15% call it a serious problem.
The size of the firm once again matters. Only 26% of small firms worry about talent gaps, compared to 86% of the largest. And the issue shows no signs of easing with 75% expecting recruitment challenges to worsen over the next five years.
Nearly all (95%) of respondents say their workforce is resistant to change whether that is adopting new operating models, transitioning to modern platforms, or rethinking entrenched practices.
At the same time, 59% believe a lack of diversity in thinking is hurting the sector, not just demographic diversity but variety of perspectives, skill sets, and approaches to problem-solving.
But views differ depending on who you ask. Just under three-quarters (74%) of managers believe lack of diversity is a problem compared to less than half (48%) of the C-suite.
This divide hints at a broader leadership disconnect which has the potential to complicate transformation efforts.
Despite the challenges, insurers show elevated levels of confidence in the ability to transform. As noted, 87% of respondents say they are ahead of the competition in digital transformation and 89% say their operating models are flexible and scalable.
Yet our research reveals a concerning gap between perception and operational reality that could impact competitive positioning as the sector consolidates.
And with legacy systems widely acknowledged as a drag on performance, insurers’ optimism may mask deeper structural vulnerabilities, especially as consolidation accelerates and competitive pressure intensifies.
Outdated systems are not merely an efficiency issue, they are shaping strategic decisions, restricting scalability, and undermining long-term capability.
Successful transformation relies just as much on the management of cultural change as it does new technology. Insurers who fail to address these gaps risk being left behind.
Our unified front-to-back investment management platform replaces legacy systems. With embedded AI to align workflows, the CWAN platform helps insurers make faster, smarter decisions with confidence across complex portfolios comprised of public and private markets, geographies, and asset classes.
Download our full findings to learn more about APAC’s top investment management challenges: