“The EAIC (East Asian Insurance Congress), I may say, was born in Tokyo, but it was just in symbol. It was in Manila that it attained substance and manhood.”
Bancassurance has emerged as a critical distribution channel in Asia, especially in emerging economies where riding on the bank partnership is propelling growth in value of new business.
The ability to adapt to the unexpected quickly and seamlessly is a major priority for today’s financial executives. In order to adjust course, decision makers must have a top-down perspective that makes it easy to account for every variable and hence be nimble and flexible.
Major Japanese insurer, Dai-ichi Life Holdings, is expanding into Cambodia, anticipating rising demand for insurance in Southeast Asia as the region’s economy grows.
The CIRC issued its amended “Insurer Shareholder Regulations” on 7 March that aim to ensure transparency and to curb undue control by shareholders of insurance companies in a bid to reduce risk.
M&A deals involving Hong Kong insurers reached US$2.84 billion in 2017, up from US$1 billion recorded in 2016, according to data from Thomson Reuters. More M&As are expected in the insurance arena.
Insurance companies, mainly government-run insurers, are losing money on the Prime Minister’s accident insurance scheme, Pradhan Mantri Suraksha Bima Yojana (PMSBY), with losses of 80-100%.
The potential of the agency distribution channel is huge, said the Indonesian Life Insurance Association (AAJI) which has pointed out that the total population of Indonesia which exceeds 250 million would ideally require one million agents to serve it.
Plans are underway to help hospitals and other medical institutions avoid payment and other problems related to tourists, including unpaid bills, government sources have said.
Nonghyup Financial Group has said that it plans to enter the Chinese and Southeast Asian insurance markets as part of its effort to expand its presence abroad.
Total motor insurance claims paid out by insurers amounted to MYR5.38 billion (US$1.38 billion) last year. On a daily basis, this works out to MYR14.7 million per day in claims for property damage, bodily injury and vehicle theft by all the motor insurers, according to the General Insurance Association of Malaysia (PIAM).
The central bank, the Reserve Bank of New Zealand, has begun publishing new quarterly statistics that will provide insights into the structure and activities of the insurance industry.
Farmers are urging effective assessment of individual loss, quick settlement of insurance claims, increases in claim amounts and cover for horticulture as well, especially orange orchards and vegetable crops.
The Philippine insurance industry is likely over-capitalised, says Mr Reynaldo A de Dios, an insurance industry doyen.
The MAS aims to promote responsible recruitment practices in the financial advisory industry and address risks that may arise from the mass poaching of insurance agents from rival insurers.
The Financial Supervisory Commission (FSC) has said that regulators would work toward deregulation to revive the appetite of local fixed-income investors – mainly insurers’ – for structured-finance products.
The Thai insurance regulator recently circulated two draft notifications that will impose new disclosure requirements on insurers.
The outbreak of cold, arctic air and Storm Emma affected a large area of Europe during the second half of February and into early March with temperatures falling to some of their coldest levels in decades, causing thousands of flights to be cancelled or delayed and many different sectors were closed due to inclement conditions. Local governments also reported that at least 88 fatalities had occurred due to hypothermia and other incidents.
Corporate Risk Management
The International Organization for Standardization (ISO) has issued a newly revised version of the ISO 31000, Risk management – Guidelines. The updated ISO 31000:2018 is a clearer, shorter and more concise guide to help organisations improve planning and decision-making through the use of risk management principles.
Political risk will remain a major concern for multinational businesses in 2018, driven by events including the North Korea missile crisis, ongoing Brexit negotiations, and trade protectionism, according to Marsh’s Political Risk Map 2018.