“The region is disproportionately exposed to the physical impact of climate change.”
Lawrence Wong, Minister for Finance
Insurers have responsibility on climate change: Wong
Despite the economic disruption caused by COVID-19, Asia continues to lead globally in terms of economic growth, the rise of the middle class, wealth creation and urbanisation, Lawrence Wong, Singapore’s Minister for Finance and deputy chairman of the Monetary Authority of Singapore, told delegates in opening remarks at SIRC yesterday (Monday, November 15).
He noted that Asia’s insurance market is growing nearly twice as fast as the global market, estimated at more than 8 percent of growth per annum until 2030. And the insurance industry can support the region’s economies in seizing opportunities in Asia in two transformative areas: climate change and digitalisation, he said.
“The future of climate change will be won or lost in Asia. Climate change poses short and long-term existential, economic and social risks to the region,” he said, noting that Asia accounts for more than 50 percent of global greenhouse gas emissions.
“The region is disproportionately exposed to the physical impact of climate change, enduring the highest disaster fatalities globally.
Climate change will exacerbate the frequency and intensity of natural catastrophes, and widen the natural catastrophe protection gap,” he said.
Wong highlighted statistics that show that from 1970 to 2020, Asia-Pacific has accounted for 57 percent of global fatalities from disasters. Meanwhile, in the first half of this year, natural disasters globally resulted in $24 billion in economic losses.
“This is significant for Asia, where emerging economies make up half of the top 10 countries most impacted by climate risk. In fact, up to 27 percent of Asia’s gross domestic product could potentially be threatened by climate risk before 2050, he said.
“The insurance industry will need to work systematically with policymakers as they respond to climate change. Insurers can support climate risk mitigation and adaptation measures, and cutting greenhouse gas emissions and transiting to a low carbon economy.”
Image courtesy of shutterstock.com / Piyaset
Technology will transform insurance
“Insurers are increasingly partnering with insurtechs in the region to support their digital, data and technology ambitions.” Lawrence Wong, Minister for Finance
Asia is rapidly digitising, and COVID-19 has accelerated this trend—but technology and big data are destined to transform the concept of insurance.
That was according to Lawrence Wong, Singapore’s Minister for Finance and deputy chairman of the Monetary Authority of Singapore, who addressed delegates in opening remarks at SIRC yesterday (Monday, November 15).
He noted that through the use of advanced technology such as sensors, satellites, and the internet of things, richer and more meaningful data is being captured and used.
“Coupled with data analytics, insurers are able to develop sharper risk insights to size and price risks more accurately,” Wong said.
He noted that many insurers, including Singapore’s top life insurers, have begun tracking users’ health and habits through fitness devices and applications. The data is then used to price premium discounts for healthier habits by the consumer.
Meanwhile, in the motor insurance space, artificial intelligence and telematics devices are increasingly being used to assess and price insurance, with better pricing for safer driving habits.
“I’m encouraged to see that insurers are increasingly partnering with insurtechs in the region to support their digital, data and technology ambitions. Over the past five years, nearly $4 billion has been invested in insurtechs, and there are at least 335 insurtechs in Asia-Pacific,” he noted.
Image courtesy of shutterstock.com / Vasin Lee
Collaboration is needed on climate change
Lloyd’s of London chair Bruce Carnegie-Brown has called on the industry to work together to tackle the “unique conundrum” of climate change.
Speaking in a keynote address at SIRC, he stressed the multifaceted challenges of climate change and warned delegates that it could deliver many surprises ahead—unknown unknowns, as he called them.
He also gave details of Lloyd’s own roadmap to net zero carbon emissions and explained some of the targets that may apply to its participants going forward and emphasised that the sheer scale of the challenge means the industry must stand together in tackling it.
Read more here
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Gallagher boosts Singapore unit
“Ng will be responsible for leading further growth in the Singapore office.”
Gallagher has made two leadership appointments to its business in Asia.
Thomas Wang has joined as chief executive officer of North Asia. He will initially be based in Singapore and will focus on building client bases in Hong Kong, Japan, South Korea, and Taiwan.
Leng Leng Ng will be joining in early 2022 as chief executive officer of Singapore, subject to approval from the Monetary Authority of Singapore (MAS).
Wang joins Gallagher from Funk Group, Germany’s largest independent family-run insurance broker. He will take the lead in designing and implementing a growth strategy across North Asia. He will report to Vyvienne Wade, chairperson of global broking in Europe, the Middle East and Asia.
Ng will be responsible for leading further growth in the Singapore office. She joins from Willis Towers Watson where since 2016 she has been CEO of Singapore.
Image courtesy of shutterstock.com / Richie Chan
Main image: Shutterstock.com / May_Lana
