APAC insurers lag with legacy systems despite 87% claim digital lead

The legacy constraint rate rises from 90% at $1b to $5b firms.

Asia-Pacific (APAC) insurers managing nearly $3.8t in assets say outdated technology is holding them back, even as most claim they are ahead of competitors in digital transformation, according to a new survey by Clearwater Analytics.

The study, which surveyed insurance asset management executives across the APAC region, found that 93% said legacy systems are constraining business growth. 

The problem was more pronounced at larger firms, rising from 90% amongst insurers with $1b to $5b in assets to 97% amongst those managing $50b or more.

In total, the respondents represented $3.8t in assets under management.

Despite these challenges, 87% of insurers said they believe they are ahead of competitors in their digital transformation efforts, with 19% saying they are significantly ahead. 

Only 1% said they were falling behind. Short-term thinking was also flagged as a concern.

Nearly three-quarters of respondents, or 73%, said their operating models focus too heavily on immediate challenges rather than long-term needs. Amongst the largest insurers, this rose to 90%.

Staffing issues linked to older systems are adding to the pressure. More than half of respondents said hiring people to manage legacy technology is a problem, including 15% who described it as a serious issue. 

Three-quarters expect this to become an even bigger recruitment challenge over the next five years.

Resistance to change remains widespread across the sector. Almost all respondents (95%) said employees are resistant to new operating models and systems, regardless of company size.

The survey also highlighted concerns around workforce diversity. About 59% said industry problems are linked to a lack of diversity in thinking and background, although views differed sharply between senior leaders and managers, as well as between life and general insurers and third-party asset managers.

Confidence remains high around operating flexibility, with 89% saying their business models are flexible enough to meet future challenges. 

This comes as 96% of executives expect increased merger and acquisition activity in the sector.

Clearwater Analytics said the findings point to a gap between how insurers view their digital progress and the reality of managing ageing technology platforms. The research was conducted in October 2025 amongst 150 senior executives in Australia, Hong Kong, and Singapore.