Nearly 56% of insurers across the Asia-Pacific region are set to expand their use of data analytics within the next twelve months, signalling a significant shift in the way the industry approaches risk, asset management, and regulatory compliance. According to a recent study, a growing number of companies in the region are turning to innovative technological solutions to overcome challenges associated with Asset-Liability Management (ALM).
The latest report from Clearwater Analytics highlights that around 10% of Asia-Pacific insurers consider adapting their ALM systems to accommodate new data sources and evolving asset allocations a formidable challenge. Meanwhile, approximately one in five organisations report that their ALM systems are fully capable of swiftly managing diversified investments and newly introduced financial instruments.
Shane Akeroyd, President and Chief Strategy Officer of Clearwater Analytics’ Asia-Pacific division, commented, “Modern ALM demands speed, precision, and integration—qualities that legacy systems increasingly fail to provide. The risks of underinvestment are multifaceted, and compliance with regulatory requirements is now non-negotiable for insurers across the region.”
The survey encompassed ALM executives from asset management firms in Hong Kong, Singapore, and Australia, collectively managing assets worth USD 3.82 trillion. The report identifies regulatory pressures as the primary driver for increased technology investment in ALM, including stress testing, solvency reporting, and enhanced risk disclosure requirements.
Another key motivator is the need for sophisticated risk models capable of handling complex or alternative asset classes. Additionally, cloud scalability, advanced modelling techniques, and artificial intelligence (AI) applications are increasingly being leveraged to generate actionable insights on risk and capital efficiency.
The report further notes that other factors contributing to rising ALM expenditure include more robust scenario analysis, enhanced stress testing capabilities, correlation analysis, and asset-class-specific accounting.
In terms of technological priorities, the survey reveals that 56% of insurers plan to increase their data analytics adoption, 55% will integrate AI and machine learning, 54% aim to enhance customer experience, and 51% intend to upgrade portfolio management systems. Moreover, 41% of firms are expanding their use of cloud technologies, while 31% plan to automate reporting processes, reflecting a concerted effort across the sector to modernise and future-proof operations.
With these initiatives, the Asia-Pacific insurance market is poised to embrace a more data-driven, technologically advanced era, blending compliance, efficiency, and strategic insight in unprecedented ways.