How can Singapore insurers manage rising risk and tech demands?

Firms turn to AI and data tools to manage complex portfolios.

Singapore insurers are increasing investment risk and technology spending to boost returns whilst meeting tighter regulatory demands, raising questions over how far firms can stretch exposure without undermining oversight.

“This shift is deliberate and strategic, driven by the pursuit of better returns in private markets and supported by a new generation of technology that gives insurers the visibility and control to manage that risk with confidence,” Shane Akeroyd, chief strategy officer and president for the Asia-Pacific region at Clearwater Analytics Holdings, Inc., said in a report.

Nine in 10 insurers in Singapore plan to raise their risk profiles over the next two years, after 84% already increased exposure, compared with 52% in Hong Kong, according to the study.

About 68% expect risk and return levels in private markets to rise further, reflecting a shift towards higher-yielding assets.

Companies are prioritising automation to manage more complex portfolios rather than relying on stricter capital controls alone.

Technology spending is also rising as regulators require more detailed stress testing, risk disclosure and solvency reporting.

Over the next 12 months, more than half of insurers plan to adopt artificial intelligence (AI)  and machine learning, whilst a similar share will expand data analytics.

Most companies rate risk visibility as strong, with 96% reporting good or excellent oversight. However, 84% said cross-asset risk tracking needs improvement, whilst 80% cited challenges in handling regulatory and compliance requirements.

Separate data from Tracxn Technologies Ltd. found that Singapore accounted for 91% of Southeast Asia’s technology funding.

Forrester Research, Inc. projected technology spending will reach about $22b (S$28b) this year, up 6% from a year earlier, supported by initiatives from the Infocomm Media Development Authority and the Monetary Authority of Singapore.

Questions to ponder:

• How can insurers expand into private markets without weakening risk controls?
• How can technology investment keep pace with rising regulatory demands?