Insurers across the Asia-Pacific region are bracing for a sharp increase in merger and acquisition (M&A) activity over the next three years, as firms pursue scale and operational efficiency in a more complex market environment, according to new research commissioned by Clearwater Analytics.
The study, which surveyed 150 senior executives from insurance asset management businesses in Australia, Hong Kong and Singapore, found that 96% expect domestic M&A activity to rise in the near term. Of those, 15% anticipate a dramatic increase. The respondents collectively represent firms overseeing US$3.823 trillion in assets under management.
Rather than opportunistic expansion, the findings indicate that consolidation is being driven by structural and strategic pressures.
The primary motivation cited by executives was the need to achieve rapid growth and competitive scale. Diversification of risk - particularly reducing reliance on a single product line or market - ranked as the second most significant factor.
Executives also identified potential operational synergies and improved financial capacity as key drivers of deal-making.
Economies of scale were ranked fifth, while eliminating competition was considered the least important factor, suggesting firms view consolidation as a means of strengthening long-term positioning rather than crowding out rivals.
The research points to an increasingly demanding operating landscape, shaped by regulatory complexity, investment market volatility and rising technology requirements. Many insurers appear to believe that maintaining standalone operations may become more difficult without expanded capabilities and broader asset bases.
The survey was conducted in October 2025 by independent research agency PureProfile on behalf of Clearwater Analytics (NYSE: CWAN).
Participants included senior leaders from life and health insurers, general insurers and third-party investment firms managing assets for APAC-based life insurers.
The findings suggest the region’s insurance sector may enter a period of accelerated consolidation, with firms assessing whether their current scale and infrastructure are sufficient to compete effectively in a changing market environment.
