Enhanced risk visibility has become a strategic priority for APAC’s insurers as firms look to expand portfolios beyond traditional investments towards private markets with the hope of generating returns, diversifying portfolios, and offsetting persistent macroeconomic uncertainty.
At the same time, APAC’s insurers must contend with an ever more stringent regulatory regime that places greater emphasis on solvency and capital requirements, enhanced reporting, and improved data quality.
Our new research captured insights from insurance asset management executives overseeing a combined $3.82 trillion in AUM, revealed that three-quarters (75%) of APAC insurers say their organisation’s risk visibility has improved over the past two years.
This improvement is rooted in technology. Insurers are leaning heavily on modern investment platforms that can integrate data from multiple sources, support model recalibration, and strengthen analytics in response to fast-shifting market conditions. With regulatory compliance demands as the top driver of technology spending across the region, better risk visibility is no longer optional, it is a regulatory and operational imperative.
Alongside technology, insurers increasingly rely on external experts to enhance risk insight. Whether providing specialist asset class knowledge or supporting complex reporting and analytics requirements, third-party managers are becoming essential partners in building more resilient and transparent investment functions.
As noted, improved risk visibility is essential in supporting APAC insurers’ increasingly sophisticated portfolios.
The region’s insurers see private markets, especially private equity and venture capital, as the standout future investment opportunity. A striking 73% of firms surveyed expect the risk/reward profile of private equity and venture capital to increase significantly over the next 12 months, far outpacing other asset classes.
| Asset class | Will increase significantly | Will increase slightly | Will stay the same | Will decrease |
| Private equity and venture capital | 73% | 16% | 9% | 2% |
| Real estate and infrastructure | 49% | 32% | 10% | 9% |
| Public fixed income | 47% | 18% | 27% | 8% |
| Private credit | 43% | 44% | 10% | 3% |
| Hedge funds and alternative strategies | 34% | 54% | 10% | 2% |
| Public market equities | 5% | 67% | 13% | 15% |
Source: Clearwater Analytics
While the majority of APAC’s insurers might be enjoying improved risk visibility, the story is not consistent across the region.
Nearly one in five (18%) of firms questioned say risk visibility has deteriorated over the past two years, with a switch to more sophisticated investment and trading strategies, and expansion of the range of asset classes in which they invest cited as the main reasons for the decline.
It is notable that 40% of the third-party firms say their visibility has deteriorated compared to just 6% of life/health firms and only 2% of general insurers. This discrepancy underscores the complexity and growing pains of managing diversified, multi-asset insurance portfolios at scale.
APAC insurers are working hard to improve risk visibility with technology and support from specialist third parties key to the improvements over the past two years. Improved risk visibility is critical as organisations increasingly see opportunities in private markets. Making full use of enhanced technology and platforms that can integrate data plays a central role as firms expand the asset classes they invest in, particularly given the regulatory pressures driving technology spending across the region.
Technology investment, data integration, and third-party partnerships are now essential to maintaining transparency, meeting regulatory demands, and navigating the growing complexity of modern insurance portfolios.