Kathmandu. Insurers in the Asia-Pacific region are expecting a major overhaul of their investment strategies. <\/p>\n
According to new research by fintech firm Clearwater Analytics, insurers in the Asia-Pacific region plan to increase their exposure to private markets and hedge funds from 20 per cent to 33 per cent over the next five years. The study surveyed insurance wealth management executives who oversaw $3.82 trillion in assets. <\/p>\n
Currently, insurance companies in the region manage about 20% of their assets in the private market. According to the study, executives in Hong Kong, Singapore and Australia expect increased allocation to private equity, venture capital, private credit and other strategies as part of a broader diversification strategy. Nearly a third of third-party managers expect a significant increase in investment diversification over the next 3 years. However, this percentage is lower in life, health and non-life insurance companies. <\/p>\n
Still, operational challenges remain a concern. Forty-one percent of the respondents cited legal and compliance difficulties. While 29 percent responded about the difficulties of integrating private market assets with traditional public holdings. <\/p>\n
The study found that 96 percent of executives expect mergers and acquisitions to increase in the next three years. This further increases the need for insurance companies with strong operational capabilities to gain a competitive advantage in an integrated market. <\/p>\n
Technology seems to be a key component in managing these challenges. Nine out of 10 respondents said their system was too or effective at processing new asset classes. 92 percent found it easier to determine the fair value of private market assets. “Insurers in the Asia Pacific region are confident in the attractiveness of private markets, which have consistently delivered strong returns,” said Shane Ackroyd, chief strategy officer and president of Asia Pacific, Clearwater Analytics. \u2019<\/p>\n
Private market allocation is expected to pick up. Insurers are expected to see a modest increase in public market investment over the next 24 months. <\/p>\n
The study expects equity, public fixed income, and real assets to increase. But at a slower pace than private equity, private credit, and hedge funds. <\/p>\n
This planned change reflects a larger trend in insurance investment strategies in the sector. Where investment diversification, operational efficiency, and strategic technology adoption will determine the winners and losers in an increasingly competitive environment. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Insurers in the Asia-Pacific region are expecting a major overhaul of their investment strategies. According to new research by fintech firm Clearwater Analytics, insurers in the Asia-Pacific region plan to increase their exposure to private markets and hedge funds from 20 per cent to 33 per cent over the next five years. The study […]<\/p>\n","protected":false},"author":16,"featured_media":286529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-286561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/286561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=286561"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/286561\/revisions"}],"predecessor-version":[{"id":286562,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/286561\/revisions\/286562"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/286529"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=286561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=286561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=286561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}