Why 85% expect APAC insurers’ portfolio risk to rise

More than three-quarters said regulatory and compliance requirements needed more time and resources. 

Asia-Pacific (APAC) insurers expect to take on more investment risk over the next two years, but many say key areas of portfolio and risk management remain under-resourced, according to new research by Clearwater Analytics.

The study, which surveyed insurance asset management executives overseeing a combined $3.82t in assets under management, found that 85% expect the risk profile of their investment portfolios to increase over the next two years. 

This follows a similar trend in recent years, with 72% saying their investment risk had already risen over the past two years.

Despite this shift towards higher risk, executives identified gaps in how insurers manage portfolio analytics and risk.

Increased automation was cited as the most important tool for managing risk, ranking ahead of tighter regulation and stronger capital controls.

The research covered senior executives from life, health and general insurers in Hong Kong, Singapore and Australia, as well as third-party investment firms working with life insurers in the region. 

It found widespread concern about insufficient time and resources devoted to core risk management functions.

More than three-quarters of respondents, or 77%, said regulatory and compliance requirements needed more time and resources. 

An even larger share, 86%, said cross-asset risk aggregation was under-resourced. 

Other areas flagged included manual processes and legacy tools, liquidity and cash flow planning, system complexity, investment due diligence, data integration, and scenario analysis and stress testing.

Shane Akeroyd, Chief Strategy Officer and President for APAC at Clearwater Analytics, said insurers in the region are becoming more comfortable with higher risk, but operational constraints remain. 

He said executives are signalling that basic functions such as regulatory compliance and risk integration are not keeping pace with rising risk appetites, adding that technology could help reduce reliance on manual processes and free up teams to focus on strategic risk management.

The research was conducted in October 2025 by independent agency PureProfile, based on interviews with 150 senior executives from APAC-based insurers and investment firms working with life insurance carriers in the region.