Singapore insurers outsource fund management amid private market growth
TOA PAYOH, SINGAPORE — Insurance asset managers in Singapore are increasingly turning to external experts to manage their portfolios, driven by the demand for greater control, transparency, and access to specialized investment expertise, according to a study by Clearwater Analytics.
In a report from Business Times, nearly two-thirds of surveyed insurers said they plan to shift more assets to third-party managers as private-market allocations are expected to rise significantly over the next five years.
Rising outsourcing trend in Singapore
Among 50 Singapore insurance asset managers surveyed, 63% said they expect to outsource more of their fund management, while 26% anticipate a larger share of assets will remain in-house, and only 11% expect no change.
Currently, insurers in the city-state have an average of 34% of their funds managed externally. The study, conducted in October 2025, also gathered input from 150 senior executives across Australia, Hong Kong, and Singapore, covering a combined US$1.04 trillion in assets.
“The use of third-party asset managers by insurers in Singapore will accelerate as they 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.
Top reasons for the shift toward outsourcing included a need for greater portfolio control, transparency, and reporting, followed by improved visibility of investments and growing acceptance of external managers.
Private markets and diversification drive change
The study found that 84% of Singapore insurers plan to diversify investments across more asset classes in the next three years. Private-market allocations, currently averaging 20%, are expected to grow to 36% of holdings over five years.
This shift toward complex asset classes has increased the demand for managers with specialized expertise, further fueling the trend toward outsourcing.
As insurers take on more diverse assets, they also face growing operational pressures and data management challenges.
Clearwater Analytics noted “significant skills and capability gaps” in investment management functions, prompting firms to recruit talent from a broader range of sectors, hire risk management specialists, adopt new tools, outsource more portfolio and risk-analysis functions.
Singapore’s insurance sector is emblematic of a broader global trend in outsourcing. As insurers seek both efficiency and specialized knowledge, the move toward external managers reflects a strategic shift in how institutional investors handle complex and private-market assets.
The combination of increasing private allocations, operational complexity, and evolving talent strategies positions outsourcing not just as a cost-saving measure but as a key driver for long-term portfolio growth and resilience.
