Nearly 9 in ten insurers bet big on tech to master risk profiles

This shift is driven by the pursuit of better returns in private markets.

Almost nine out of 10 (88%) of Singaporean insurers are planning to invest more in management risk profiles over the next two years with the help of technology, according to a Clearwater Analytics report.

“This shift is driven by the pursuit of better returns in private markets,” said Shane Akeroyd, Chief Strategy Officer and President of Asia Pacific at CWAN.

The report said increased levels of automation were identified as the key method to manage risk. Firms said regulatory demands were the main drivers of increased technology spending.

The research identified two equal priorities for technology spend over the next 12 months, as 58% of insurers said they will focus on increasing use of data analytics and integrating artificial intelligence.

However, only 6% say risk visibility has deteriorated over the past two years, with the expansion of the range of asset classes and a switch to more sophisticated investment cited as the main reasons.

Firms which have seen a deterioration in risk visibility also point to cuts in technology investment and challenges in integrating data as explanations for the decline.

Nearly nine out of 10 (84%) believe more resources should be spent on cross-asset risk aggregation, whilst 80% said more time should be spent on regulatory burdens.