Kathmandu. Insurers in the Asia Pacific region are expected to take more investment risk in the next 2 years. But many say there are still inadequate resources in specific areas of portfolio and risk management.
That’s according to a new research report by Clearwater Analytics. The study, which surveyed insurance asset management executives who oversee a total of $3.82 trillion in assets under management, found that 85 percent expect the risk profile of their investment portfolio to increase over the next two years. It follows a similar trend in recent years. That’s because 72 percent said that their investment risk has already increased in the last two years.
Despite this shift toward increased risk, executives have identified gaps in insurers’ portfolio analysis and risk management practices. Increasing automation was cited as the most important tool for risk management ahead of tighter regulation and stronger capital controls.
The research included senior executives of life, health and non-life insurance companies in Hong Kong, Singapore and Australia, as well as third-party investment firms working with life insurers in the region. It has raised serious concerns about the limited time and resources allocated to key risk management functions.
More than three-quarters of respondents, or 77 per cent, said regulatory and compliance requirements require more time and resources. A further 86 percent said there were fewer resources for cross-asset risk integration.
Other areas of focus included manual processing and outdated tools, liquidity and cash flow planning, system complexity, investment due diligence, data integration, scenario analysis and stress testing.
Shane Ackroyd, chief strategy officer and president of APAC at Clearwater Analytics, said insurance companies in the Asia-Pacific region are becoming more comfortable with high risk. “However, operational challenges still remain,” he said.
According to Ackroyd, executives are signaling that basic functions such as regulatory compliance and risk integration are not keeping pace with the growing risk attractiveness. “Technology can help free up teams to reduce reliance on manual processes and focus on strategic risk management,” he said.
The research, conducted in October 2025 by independent agency PureProfile, is based on interviews with 150 senior executives from insurance companies in the Asia-Pacific region and investment firms working with life insurance companies in the region. –Agency
