Optimistic trends and tech priorities for APAC insurers in 2024: Clearwater Analytics
Clearwater Analytics, a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, has released its 2024 Hong Kong & Singapore Insurance Industry Outlook report highlighting several key trends and insights that are set to shape the insurance landscape in the Asia-Pacific region in the coming year.
The survey, conducted in October and November of 2023, engaged over 80 insurers and insurance asset managers in Hong Kong and Singapore, representing a substantial $2.5 trillion in assets under management.
Notable among these is the anticipation of a significant wave of merger and acquisition (M&A) activity, aligning with the broader global trend toward consolidation within the industry.
One of the standout findings is the industry’s robust appetite for more advanced technologies. A staggering 99% of respondents expect increased allocations towards private market assets in 2024.
However, a notable 37% express concerns regarding the determination of fair value for these assets, indicating a need for enhanced valuation strategies.
Moreover, the study indicates a strong push towards technological advancements, with 86% of respondents foreseeing a rise in technology spending in the coming year.
The C-suite executives, in particular, are prioritising the implementation of artificial intelligence (AI), machine learning (ML), and cloud-based solutions.
This reflects a proactive stance among insurers and asset managers to leverage cutting-edge technologies for improved operational efficiency and decision-making.
Tom Marlatt, Director of Insurance at Clearwater Analytics, commented on the findings, stating, “In 2024, insurers in Hong Kong and Singapore will encounter increasingly diversified investing strategies, industry-wide consolidation, exciting new technological advancements, and emerging regulatory directives.”
He emphasised that despite these transformative trends, the study reveals an overall sense of optimism among industry players.
Marlatt added, “As insurers assess their readiness to make progress in the new year, the path forward will depend on where they find themselves in terms of operational capabilities, investing strategies, technology adoption, and more. Based on our findings, one priority is clear: the industry will require modern, trusted technology to deliver high-quality data that drives greater returns, customisation, and ultimately contributes positively to their bottom line.”
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