What is the likelihood that anyone in the insurance industry would have cause to think back fondly to the hard, dark days of the COVID-19 pandemic?
What we failed to grasp at that time was the uniqueness of having the human race battling a common foe in the form of a virus. Ironically, forcing people into isolation had the side effect of bringing us closer together as a species.
‘Be kind: Everyone you meet is fighting a battle you know nothing about’ is one of the most memorable phrases to bubble to the surface during this time. It summed up a world view that many people bought into at that time, caring for your fellow humans – but it seems to have slipped from public consciousness today.
In early December we awoke to the headline ‘New York police investigate bullet casing inscriptions in killing of insurance executive’.
The head of the US-based UnitedHealth Group’s insurance company had been assassinated by a lone gunman and the words ‘Depose’, ‘Deny’ and ‘Defend’ were inscribed on the bullet casings found at the scene.
This has been interpreted as a nod to the book ‘Delay, Deny, Defend’, published in 2010 and focused on how large health insurers avoid paying claims.
Have we really reached the point where the reputation of the insurance sector has become so tarnished that people are seeking retribution by such violent methods? Or is the US an outlier in this regard?
In truth, this is not the only symptom of a new world that takes real effort to understand.
In France, the government is in chaos with the prime minister stepping down. In South Korea, the president attempted to impose martial law and is facing impeachment and possible jail time.
In Syria, rebels have unseated the Assad government after Russian support for the regime evaporated. Romania has declared the first stage of its elections invalid after alleged mass tampering by Russia.
Meanwhile, Russia president Valdimir Putin is still engaged in his war on Ukraine and the uneasy truce that Israel has forged in the Middle East looks precarious at best.
And as a backdrop to all of this, Swiss Re Institute estimates that insured losses for 2024 are projected to exceed $135bn globally - the fifth consecutive year of such losses topping $100bn, highlighting the growing financial toll of climate change and urbanisation.
In the Asia-Pacific region, it can feel a little as if the insurance sector is on the sidelines of all this chaos and is playing the part of passive observer – and yet the role of insurance is to help de-risk societies, businesses, families and everyday life.
The harsh reality is that insurance is also a business – deploying capital in the hope of making a respectable return. It can be hard to justify putting capital to work in a situation that is fraught with uncertainty or danger.
What will 2025 hold in store for insurance industry leaders in APAC? An increase in the number of personal protection officers employed? Or more concerted efforts to close the protection gaps? A
Paul McNamara
Editorial director
Asia Insurance Review