A new study on the regulatory compliance strategy of APAC insurers reveals a huge divide in how they deal with the demands of financial regulators.
Almost half (48%) of insurers in APAC say meeting internal and external reporting demands is the biggest challenge they face in complying with the requirements of financial watchdogs.
The study conducted by Clearwater Analytics, which offers a technology platform for investment management, polled insurance asset management executives at firms with total assets under management of $3.82tn. Senior executives at the asset management arms of life and health insurers and general insurers based in Hong Kong, Singapore, and Australia as well as executives at third-party investment firms working for life insurance carriers, were questioned in the study.
It found a clear divide in regulatory priorities: small ($1-$5bn AUM) and medium ($5-to $10bn AUM) rank meeting reporting demands as their top challenge, while large ($10-$50bn AUM) and extra-large (more than $50bn AUM) firms prioritise adapting to regulatory changes.
Adapting to regulatory changes
Beyond reporting demands, more than a third (35%) of respondents identify adapting to the regulatory changes as the biggest challenge, while 13% cite meeting varying requirements across different regimes as the primary hurdle.
Impact of changing regulations across markets
When asked about meeting changing regulatory requirements across different markets over the next three to five years, 14% say it will be very difficult, while another 18% say it will be quite difficult. Just 10% say it will be very easy, while 43% say it will be quite easy.
Despite these forward-looking concerns, respondents expressed confidence about insurers’ current capabilities across APAC to adapt to regulatory changes. More than a third (37%) believe insurers are excellent in compliance, while half (55%) say they are very good. Only 5% say they are poor or very poor in compliance capabilities. However, with one-third expecting increasing difficulty, regulatory complexity will likely test these capabilities.
Clearwater Analytics Chief Strategy Officer and President of Asia Pacific, Mr Shane Akeroyd, said that the regulatory landscape across APAC is creating a tale of two markets. “Small firms are struggling with current reporting demands while large firms are positioning for future regulatory changes. This divide will become more pronounced as requirements continue evolving across multiple jurisdictions. The insurers that build integrated compliance capabilities now will have significant competitive advantages as regulatory complexity increases,” he said.
For the study, Clearwater Analytics commissioned independent research agency PureProfile to interview 150 senior executives working for the asset management arms of life/health insurers and general insurers based in APAC or third-party investment firms working for APAC life insurance carriers. The research was conducted in October 2025 in Australia, Hong Kong, and Singapore.