After supporting the APAC team remotely for an extended period, it became clear that having a physical presence in the region would offer significant advantages. With multiple projects underway, being on the ground enabled deeper business development opportunities and participation in a roundtable at a major regional insurance conference.
This first-hand exposure offered valuable insights and a unique perspective compared to insurance markets in Europe and the Americas. While many global trends are consistent, several distinctive regional dynamics emerged – particularly around AI adoption, regulation and decision-making culture.
Digital transformation in the insurance sector
Like in almost every industry today, AI – and data in general – continues to dominate conversations. As is happening elsewhere across the globe, margins are under pressure and insurers are looking for ways to increase their margins. To this end, the insurance industry in APAC is looking at how they use AI to drive revenue and reduce expenses.
Additionally, in a number of conversations with insurance executives, the topic of core modernisation came up. As is the case in other regions, in APAC there are many legacy IT systems still in production. These legacy systems are hindering their ability to be able to react swiftly to market changes. These market changes include such things as the financial situation of many insurers deteriorating, customers demanding better interactions and experiences and the increasing number of natural disasters around the world.
Regulatory fragmentation and market entry challenges
One of the most noticeable key differences is the wide disparity in the different markets across APAC when it comes to regulatory standards, focus areas and market strategy. Some would argue that Europe is fragmented into different countries and the US is fragmented by the different states.
However, Europe has the European Union and the US has the federal government to bring some overarching structures. A similar overarching structure is broadly missing in APAC making it difficult to enter new markets. As such, the regulatory environments change greatly from one market to another with few consistencies across them.
Another distinction I noticed as a result of my move from the UK to the US, is the difference in how decisions are made. I broadly interact with clients and potential clients at the more strategic levels and it’s in these discussions where differences in the decisions making process are most evident.
The US is focused on results when making decisions, almost relentlessly so. This is not to say the UK wasn’t, but relationships also played an important role in the decisions. APAC tends to follow the relationship model, while still keeping a focus on results. This approach takes a little more time as it means the right people need to be prepped ahead of decisions being made, but it allows a slightly more holistic approach to decision making.
A high calibre of talent globally
Despite regional differences, one thing remains consistent: the high calibre of talent across the APAC insurance landscape. The individuals I met and collaborated with consistently demonstrated deep expertise, adaptability and ambition. These attributes give me strong confidence that the insurance sector in APAC is well-positioned not only to navigate its challenges, but to thrive and lead in the years to come.