“The insurance sector now finds itself at a crossroads, facing an unprecedented pace of innovation that demands agility and adaptability” – Sim Ung, Payments Advisory, Asia Pacific, J.P. Morgan

In a time of unparalleled change for the insurance industry, payments innovations have emerged as key differentiators, often offering a competitive advantage over those who are not attuned to industry trends. These advancements are enhancing competitiveness, profitability, and adapting to the evolution of customer needs and lifestyles. 2025 has shown four clear trends for insurers, focusing on optimizing cash, money movement, innovation and localized support.

Trend 1: Always-on, intelligent liquidity management

Building resiliency into the treasury ecosystem to optimize liquidity and automate funding is top of mind for J.P. Morgan’s APAC clients, and intelligent liquidity strategies are even more crucial in volatile economic environments. For multinational insurance companies, cross-border cash pooling can optimize liquidity and debt cost by mobilizing cash across regions within seconds. Alongside this, implementing advanced treasury management systems and virtual accounts can deliver real-time visibility into cash positions, automate routine tasks, facilitate efficient decision-making, and provide instant access to liquidity.

Another focus area for J.P. Morgan Payments clients is cash flow forecasting. By predicting cash inflows and outflows to identify available liquidity or funding needs, insurance companies can anticipate periods of surplus or deficit and make informed decisions about strategic investments and financing. Using advanced analytics and AI tools can enhance this forecasting accuracy by analysing historical data and market trends, with J.P. Morgan and other banking partners.

Speaking at the recent ITC Asia event in Singapore, J.P. Morgan’s Sim Ung said “Insurers are grappling with significant changes, particularly the swift pace of innovation. While the internet took years to achieve widespread adoption, generative AI reached mass adoption in just two months. This underscores the critical importance of understanding and leveraging fast-moving trends like payments for business growth and survival. No one can afford to be left behind." 

Trend 2: Real-time, cross-border settlement

Cross-border payments are foundational to the insurance industry with claim payouts or reimbursements across markets –the difference now is expectation of real time, cross-border settlement, embedded with FX solutions.

J.P. Morgan can provide a suite of multi-currency solutions that can guarantee local payment obligations are met while optimizing FX and prefunding requirements – a game changer for insurers. Through end-to-end automation, insurance companies can reduce risk of human error, enhance liquidity management, extend operating hours, and enable smarter FX conversion.

Trend 3: New payment options

The growth in online payment services and digital wallets as alternative methods of payments is another area to watch. By strategically introducing new payment options to attract diverse and high impact demographic segments, whilst preserving traditional channels to retain older groups, insurance companies can reach a wider audience, thereby boosting customer satisfaction and loyalty. However, it is crucial to expand judiciously so that online payment cost and its associated operational complexities are effectively managed and aligned with growth trajectory.

Trend 4: Leverage Shared Service Centers to achieve Operational Efficiency

Shared service centers (SSCs) have been increasing in popularity in the APAC region, recognised as an effective way to centralize key functions like claims processing and customer support to maximize efficiency and consistency. By integrating AI and automation, SSCs have been able to deliver strategic advantages in scalability, agility, and unmatched customer experiences. SSCs enhance risk management and compliance, offering strategic advantages in scalability, agility, and superior customer experiences, positioning insurance firms as industry leaders.

Tom Lydon, Head of Non-Bank Financial Institutions Group (NBFI) Sales, APAC, at J.P. Morgan Payments, states, “Insurance is a highly competitive space, and one where innovation has a big impact. Customers have an expectation that their insurance brokers and providers will stay close to developments in the market and offer them the latest products. Trends are not a ‘nice to know’ – they are a business imperative. We have seen great demand for cash flow forecasting, pooling and cross currency sweeps this year as insurers follow the market with a more cautious approach.”

He added, “Our client-first solutions, developed with the latest technology, meet these demands and push the industry forward in Asia Pacific.”

The impact of these payment trends is undeniable. Multinational corporations have reported substantial improvements in financial operations, bolstering their financial integrity and strengthening their reputation among stakeholders. These solutions have not only improved operational efficiency, but have also enhanced the overall trust and reliability of financial reporting.

“The insurance sector now finds itself at a crossroads, facing an unprecedented pace of innovation that demands agility and adaptability,” remarks Sim Ung. “Embracing these payment trends is not just a strategic move—it's a necessity in today's competitive landscape. By leveraging advanced technology and innovative solutions, insurance companies can ensure their financial operations are robust and reliable, enabling them to thrive, stay ahead, and unlock growth in this dynamic environment.”