A growing share of insurance asset managers in the Asia–Pacific region expect to shift more of their portfolios to external specialists, according to new research from Clearwater Analytics. The survey of firms in Hong Kong, Singapore and Australia — representing a combined US$2.6 trillion in assets under management — found that insurers currently outsource an average of 35 per cent of their funds, with all respondents delegating at least part of their portfolios to third-party managers.
Over the next five years, 67 per cent of participants expect the proportion of externally managed assets to increase, while 22 per cent anticipate more assets being brought back in-house. Just 11 per cent expect no change. The findings point to a substantial rise in third-party management as private market allocations grow and insurers seek more specialised expertise.
The study shows a shift in the motivations for outsourcing. Improved reputation and broader acceptance of external managers ranked as the most influential factor, followed by better transparency and reporting capabilities. Asset managers also cited increased control of portfolios through improved modelling, analytics and risk-management tools.
By contrast, traditional drivers of outsourcing — including lack of internal expertise and cost reduction — were ranked as the least important considerations, suggesting the trend is increasingly strategic rather than budget-driven.
Shane Akeroyd, Chief Strategy Officer and President of Asia Pacific at Clearwater Analytics, said the findings reflect growing confidence in third-party managers as insurers expand into more complex private market investments. He said technology platforms that enhance visibility and oversight are supporting this shift by giving insurers greater control over outsourced portfolios.
With 96 per cent of respondents expecting heightened M&A activity and private markets forecast to make up a third of future allocations, Akeroyd said external expertise will continue to be viewed as a competitive advantage for APAC insurers.
