Insurers in Asia and Australia are preparing to hand a larger share of their portfolios to external managers as they expand into private markets and seek improved technology and reporting capabilities, according to new research from Clearwater Analytics.
Clearwater’s latest study of insurance asset managers in Australia, Hong Kong, and Singapore found that survey participants currently outsource, on average, 35% of their portfolios to third-party managers. All respondents allocate some portion of their general account assets externally, with individual firms delegating between 24% and 45% of assets.
The asset managers – representing life, health, and general insurance businesses with a combined $2.6 trillion in assets under management (AUM) – expect those allocations to shift further toward external firms over the next five years. Around two-thirds (67%) of respondents anticipate a larger proportion of assets will be run by external managers. About 22% expect to bring more assets back in-house, while 11% foresee no material change in the current split between internal and external management.
These APAC findings were based on 150 interviews conducted in October 2025 by independent research firm PureProfile, covering senior executives in insurance asset management units across Australia, Hong Kong, and Singapore.
The survey suggests that outsourcing decisions among APAC insurers are being driven less by cost or staffing constraints and more by strategic, governance, and technology considerations. Respondents cited the increased acceptance of external managers as the primary factor behind plans to increase outsourcing. Greater transparency and reporting from third-party managers ranked as the second most important driver. Greater control over investment portfolios – including better oversight of models, analytics, and risk exposures – emerged as the third-ranked factor. Executives also pointed to more visibility into portfolios as a supporting reason for greater use of external providers.
In contrast, a shortage of internal expertise and cost-reduction goals were ranked as the least important motivations for moving assets to third parties, suggesting that outsourcing is being used as part of a broader operating model rather than as a simple cost-cutting tool. “The use of third-party asset managers across APAC is set to accelerate as insurers become increasingly comfortable with the practice and seek specialised expertise for complex private market investments,” said Shane Akeroyd, chief strategy officer and president of Asia-Pacific at Clearwater Analytics.
Akeroyd added: “Generally, the shift is being driven by technology and the growing use of platforms which enable insurers to have the control and transparency they need. With 96% expecting increased M&A activity and private markets set to represent a third of allocations, external expertise becomes a competitive advantage.”
The APAC results sit within a broader global rise in insurance investment outsourcing captured in the Clearwater Analytics 2025 Insurance Investment Outsourcing Report, produced with DCS Financial Consulting. The global study reports a record $4.5 trillion in unaffiliated general account insurance AUM by external investment managers, representing a 24% year-on-year increase. Investment consultant assets under advisement reached $2 trillion.
Private markets have played a significant role in that expansion. The report notes that private market assets within outsourced insurance portfolios have reached $800 billion, up from less than $50 billion a decade ago. Over the same period, outsourced AUM almost tripled, while the number of participating managers increased to 90.
The global findings highlight three themes with direct implications for insurers in Asia and Australia as they review their investment and operating models. First, insurers continue to increase allocations to private asset classes, including private credit and other alternative strategies, as part of multi-asset portfolios. The report notes that private asset AUM grew 34% year-on-year to $800 billion, with more private asset managers targeting insurance clients and more insurers using private markets for diversification and liability-matching objectives.
Second, public assets remain the core of insurers’ portfolios, but are increasingly managed alongside private strategies in integrated multi-asset frameworks. Eighty-three percent of managers participating in the study offer public asset strategies, and many also provide private asset solutions, requiring stronger operational and analytical support across both segments.
Third, technology is becoming central to how insurers evaluate and work with external managers. More than 80% of participating managers now deliver customised portfolio reporting, cash flow projections, accounting analytics, and regulatory support, supported by advanced technology platforms. AI-based analytics are beginning to see wider use as insurers seek to aggregate and interrogate data across complex portfolios and jurisdictions.
