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Regulatory harmonisation is key sector’s ASEAN Insurance Education Committee (AIEC)
have played a crucial role in providing and facilitating
Given the diverse regulations and practices, the development training to improve capabilities and technical knowledge
and liberalisation of the insurance markets in the region for regulators as well as the insurance industry.
will not be achieved without regulatory harmonisation and
mutual recognition. In addition to professional capacity building, various
activities and initiatives need to be implemented to
Regulatory difference can raise the cost of cross-border improve insurance penetration in the region by promoting
services – the costs of complying with different sets of rules insurance products and consumer education to boost
can be high, it is costly to learn about and understand awareness.
an unfamiliar regulatory system, and the information
available in the foreign market may be hard to interpret and Conclusion
evaluate. All this hinders the insurance market integration
in ASEAN. Again, the AIRM is a platform where we can work In all, although significant progress has been made in
closely together to bring about consistency in and clarity opening up the insurance market, there are still many more
on the insurance regulatory frameworks within ASEAN. tasks to be done among the policy makers and regulators
ASEAN to realise AEC’s objective of freer flow of services.
Industry engagement
With a market of 620 million people and a GDP of US$
Industry players must be engaged in the ASEAN insurance 2.5 trillion, and an average low insurance penetration
sector integration for AEC 2015 and beyond. Based on their which is much less than the global penetration rate, the
practical experiences, they can share views or provide ASEAN insurance industry has high potential for growth.
feedback on how services can be better liberalised, and Indeed, the liberalisation of insurance services will greatly
to make it easier for businesses to better customers in the benefit the region. Insurers will benefit from ASEAN’s
integrated environment. diversification of insured risks, the realisation of economies
of scale and a wider area for investing assets. Whereas,
The plenary session between AIRM and AIC allows the consumers will benefit from having a wider choice of
private sector to share ideas/views and practical experiences, products and a higher degree of competition amongst
raise issues or concerns, and make recommendations about insurance companies.
what, when and how to open the market so that the industry
can be prepared in a timely manner to implement the In conclusion, I would like to reiterate the importance of
regional integration policy. public-private partnerships towards effective and efficient
insurance market integration in ASEAN. On the public
For sustainable development and efficient functions of side, AIRM and WC-FSL shall work more closely together
the integrated market, continuous capacity building and and engage in regular dialogue to further develop and
research have to be intensified to avoid the risk of derailing integrate the ASEAN insurance sector. While we undertake
the growth potential of the insurance industry in ASEAN. negotiations towards liberalisation, the private sector
It is critical to further develop a talent pool within the should be consulted, and their voice should also be heard
core insurance functions as well as market supervision. so that the liberalised areas of the industry are operational
Under the AIRM and AIC’s umbrella, the ASEAN Insurance and have minimal impact on the industry players.
Training and Research Institute (AITRI) and the private

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