SYDNEY, AUSTRALIA – In Clearwater Analytics’s latest study, insurance asset managers in Australia, Hong Kong, and Singapore are entrusting more of their portfolios to external managers.
There are three factors driving this decision:
- APAC insurers are now more accepting of external managers handling their portfolios.
- External managers deliver their promise of greater transparency and reporting.
- APAC insurers can exert greater control over their portfolios, including better oversight of models, analytics, and risk exposures.
The use of third-party managers across APAC is set to accelerate as insurers become increasingly comfortable with the practice and seek specialized expertise for complex private market investments.
Generally, the shift is being driven by technology and the growing use of platforms which enable insurers to have the control and transparency they need. With 96% expecting increased M&A activity and private markets set to represent a third of allocations, external expertise becomes a competitive advantage.
— Shane Akeroyd, Chief Strategy Officer and President of APAC at Clearwater Analytics
What This Means for APAC Outsourcing Firms
Specialized outsourcing firms in the APAC region are most likely to benefit from this move, as 67% of APAC insurers favor allocating these portfolios to them over the next five years.
APAC insurers are looking to them for the “strategic, governance, and technology” advantage they bring, which can enhance these insurers’ competitive advantage.
