Clearwater Analytics research finds Singapore insurers are bracing for a wave of domestic M&A — making the gap between digital confidence and operational reality a pressing competitive concern
SINGAPORE, Apr 1, 2026 – Despite 82% of Singapore insurers claiming to be ahead of the competition when it comes to the adoption of digital systems, almost all (98%) admit legacy technology is holding back their business growth — a combination that suggests an industry aware of its constraints but potentially underestimating their long-term competitive consequences, new research from Clearwater Analytics (NYSE: CWAN), the most comprehensive technology platform for investment management, shows.
The study with Singapore based insurance asset management executives at firms with total assets under management of $1.04 trillion found that nearly all (98%) of respondents agreed that older technologies are still driving future strategy and are proving to be a constraint on their businesses. It is a similar story in Hong Kong where the research found 96% believe there is still a reliance on older technologies.
“While Singapore insurers show confidence in their digital progress, our research reveals a concerning gap between perception and operational reality that could impact competitive positioning as the sector consolidates,” said Shane Akeroyd, Chief Strategy Officer and President of Asia Pacific at CWAN. “Our research highlights a critical misalignment between the strategies of Singapore insurers and the operational effectiveness of their current technology stacks that rely on older systems that are increasingly difficult to manage.”
Around 70% said their company’s operating model is too focused on short-term challenges and goals rather than long-term issues facing their organisation.
Hiring people to manage legacy systems is one area that has become increasingly problematic, according to half (50%) of those surveyed, with 8% saying it is a serious problem. While 28% of the executives suggested the problem was relatively minor, none expressed a view that there was no problem with recruitment in the sector.
The technology challenges are also cultural and appear to be rooted in deep organisational resistance. Almost all respondents (96%) said people working in the insurance industry are resistant to change and the adoption of new operating models and systems. Only 4% said this was not an issue.
“There are worrying signs that those working in these businesses lack confidence in the long-term capability of their organisations to deliver their full potential,” continued Akeroyd. “Cultural change is critical for digital transformation and must be addressed if technology rollouts are to be successful.”
Workforce diversity emerges as a critical factor, with almost three quarters (72%) saying problems in the insurance sector are caused by a lack of diversity – not just of people from different backgrounds, but also with different ways of thinking. In Hong Kong just 28% say the same.
The contradiction deepens when examining competitive perceptions. Despite concerns about technology and culture, most respondents (82%) consider their organisation to be ahead of their competitors in terms of their digital transformation journey (10% said they were significantly ahead). None said they were trailing behind their competitors, though 18% did believe they were in line with them.
There was confidence in the flexibility and scalability of operating models being able to meet new challenges. More than nine out of 10 (94%) said their organisation’s models were flexible (26% said very flexible). In Hong Kong, more than three quarters (76%) said their organisation’s models were flexible (28% said very flexible).
Insurers in the Singapore region are braced for a surge in M&A activity in their domestic markets. Almost all (94%) predict a rise in domestic M&A over the next three years, and around 10% predict a dramatic increase.
A focus on growth is the main driver of M&A activity in the region with firms looking for ways to expand quickly. The need to diversify risk and reduce dependence on a single product or market was selected as the second reason for increased M&A activity.
Potential synergies from mergers or acquisitions were rated as the third most important reason ahead of the improved financial capacity of the combined firm. Economies of scale from mergers and acquisitions was ranked fifth as a factor fueling M&A with a desire to eliminate competition ranked last.
“With 94% of Singapore insurers expecting increased M&A activity, those that close the gap between digital confidence and operational reality will be best positioned to lead consolidation rather than become a target of it – and those that do not may find their operating models are not as flexible or scalable as they had believed,” added Akeroyd.
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