“The insurance industry is crucial in making societies and economies more resilient.”
Jérôme Jean Haegeli, Swiss Re
Global premiums to hit record $7 trillion
The global insurance industry is set to reach a new record in global premiums by mid-2022, exceeding $7 trillion, according to Swiss Re Institute’s latest sigma study, published yesterday (Wednesday, November 17).
Global insurance premiums are expected to grow by 3.4 percent in real terms in 2021, 3.3 percent in 2022 and 3.1 percent in 2023 while insurance profitability will be supported by heightened risk awareness in both the life and non-life segments in the wake of the COVID-19 pandemic, and continued strong rate hardening, the report said.
It also noted that rapid decarbonisation is becoming an imperative and societies’ approach to transitioning to a ‘green’ economy will determine the economic outlook, with insurers playing an important role in this process.
“Given its capacity and expertise to absorb risks, the insurance industry is crucial in making societies and economies more resilient. For inclusive and sustainable growth, everyone must be on board. Green growth is sustainable only if it is also inclusive.
“We have a unique opportunity to build a better market system. This will help to create the transition we need for a sustainable path to a net zero carbon economy by 2050,” said Jérôme Jean Haegeli, Swiss Re group chief economist.
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Image: shutterstock.com / GLF Media
A first for foreign insurers in China
“Allianz China Life will become a 100 percent-owned subsidiary of Allianz China Holding.”
Allianz China Life Insurance announced during SIRC that it has received approval from the Shanghai Regulatory Bureau of the China Banking and Insurance Regulatory Commission to complete a deal that will make it the first wholly foreign-owned life insurance company in China developed from a joint venture.
The company has received permission to transfer the 49 percent shareholdings owned by CITIC Trust to Allianz (China) Insurance Holding. Upon completion, Allianz China Life will become a 100 percent owned subsidiary of Allianz China Holding.
Sergio Balbinot, board member of Allianz and chairman of Allianz China Holding, said: “We are very pleased to receive the approval to be the first wholly foreign-owned life insurance company in China developed from a joint venture.
“Allianz is proud to be the first insurance group to benefit from the opening-up measures announced by the Chinese government. China is an important strategic market, and today’s approval puts us in a position to maximise our contribution to the development of China’s financial services landscape.”
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Image: shutterstock.com / Panitchon
Satellite flood partnership in Japan
“Aon and ICEYE share a belief that better data leads to better decisions.” Rupert Moore, Aon
Aon has unveiled, during SIRC, a new collaboration with satellite and persistent monitoring firm ICEYE to provide insurers with flood hazard data following severe flooding events in Japan, helping them to reduce volatility and better understand the post-event impact on their portfolios.
According to the Japan Meteorological Agency (JMA), Japan experiences an average of three typhoon landfalls and several flood events annually. In 2018 and 2019, the country was subject to three of the five largest wind and flood insurance losses in Japan’s history, with insurers settling claims of more than $30 billion over the two-year period.
Rupert Moore, chief executive officer for Aon’s Reinsurance Solutions in Japan, said: “Aon and ICEYE share a belief that better data leads to better decisions and, in turn, better outcomes.
“Our collaboration with ICEYE aims to assist clients with improving the robustness and accuracy of their responses to flooding events in Japan as they navigate this form of volatility.
“The combination of ICEYE’s technology and Aon’s buildings database provides a unique and innovative way for them to better address potential claims post-flooding in the country with more information and insights.”
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Digitisation favours the brave
“The surge in data interaction brought all the sought-after benefits of digital channels.”
Insurers able and willing to embrace technologies such as artificial intelligence (AI) may have gained an edge in the COVID-19 pandemic, but such a strategy is not without risks, a panel of experts from Munich Re, IAG, CXA Group, Ergo and the Thai regulatory authority told SIRC delegates.
The COVID-19 pandemic and lockdowns accelerated digitisation, tipping the scales in favour of insurers able and willing to place a decisive bet on technologies such as AI—but this was not without risks, industry leaders told a SIRC panel titled “The Potential of Data Analytics and AI in Insurance”.
The surge in data interaction brought all the sought-after benefits of digital channels while rendering a new quality of data collected, including from parts of the population not previously visible in the digital world.
“The major question will be how much of this will remain after COVID-19,” said Fabian Winter, the chief data officer at Munich Re.
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Image: shutterstock.com / jamesteohart
Main image: Shutterstock.com / JKboy Jatenipat
