Singapore insurers are grappling with a significant gap between their digital ambitions and operational realities, according to new research by Clearwater Analytics. Whilst 82% of insurers believe they are ahead in digital adoption, 98% acknowledge that legacy technology is hindering their growth. This contradiction highlights a potential underestimation of long-term competitive challenges.
The study, involving executives from firms managing $1.04t in assets, reveals that nearly all respondents agree older technologies are constraining their businesses. This issue is mirrored in Hong Kong, where 96% of executives report similar reliance on outdated systems. Shane Akeroyd, Chief Strategy Officer at Clearwater Analytics, noted, “Our research highlights a critical misalignment between the strategies of Singapore insurers and the operational effectiveness of their current technology stacks.”
Cultural resistance to change is another hurdle, with 96% of respondents indicating reluctance within the industry to adopt new systems. Additionally, workforce diversity is seen as a critical factor, with 72% attributing sector problems to a lack of diverse perspectives.
Despite these challenges, confidence remains high, with 82% of insurers considering themselves ahead of competitors in digital transformation. Moreover, 94% predict a surge in domestic mergers and acquisitions (M&A) over the next three years, driven by growth ambitions and risk diversification.
Akeroyd emphasised the importance of bridging the gap between digital confidence and operational reality, stating, “Those that close the gap will be best positioned to lead consolidation rather than become a target of it.”
