Asia-Pacific insurers should prepare for a wave of mergers and acquisitions (M&A) in the next three years as the industry seeks scale and efficiency, according to a study by Clearwater Analytics Holdings, Inc.

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Firms are focused much connected boosting operations than pushing rivals out.

Asia-Pacific insurers should hole for a activity of mergers and acquisitions (M&A) successful nan adjacent 3 years arsenic nan manufacture seeks standard and efficiency, according to a study by Clearwater Analytics Holdings, Inc.

The study recovered that 96% of security plus guidance executives expect home M&A activity to rise. About 15% spot a crisp summation successful deals.

The October 2025 study covered 150 elder executives astatine life, wellness and wide insurers, arsenic good arsenic third-party finance managers. Together, they oversee astir $3.8t successful assets.

The main driver is nan request to turn quickly to enactment competitive. Executives besides want to diversify consequence crossed products and markets.

Executives successful Hong Kong, Singapore and Australia cited nan request to seizure synergies, fortify equilibrium sheets, and amended economies of standard arsenic reasons to consolidate.

In a abstracted report, Norton Rose Fulbright LLP said world security M&A apt accrued past twelvemonth aft respective awesome agent deals were completed aliases announced successful precocious 2024.

Regulation is adding pressure. From 1 January 2025, Australia requires ample companies to study nan greenhouse gases they nutrient straight and indirectly crossed their operations and proviso chains.

Rules connected artificial intelligence (AI)  are besides tightening. Stricter requirements for high-risk AI systems, including those utilized successful underwriting, are expected this year.

Singapore, Hong Kong and nan UK are expanding governance frameworks for generative AI and large-scale models.
Clearwater said eliminating competitors classed arsenic nan slightest important logic for deals. Firms are focused much connected strengthening operations than pushing rivals out.

Shane Akeroyd, main strategy serviceman and president for Asia-Pacific astatine Clearwater Analytics, said standalone operations mightiness struggle successful a marketplace pinch heavier regulatory and finance demands.

He said nan adjacent 3 years would apt abstracted insurers that lead consolidation from those that are acquired.

As woody activity picks up, insurers look cardinal questions, nan answers to which could style which firms look stronger successful a tougher operating environment.

Questions to ponder:

• How are insurers integrating finance guidance pinch underwriting strategy?
• Could backstage equity play a bigger domiciled successful security acquisitions?
   

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