Speakers at this year’s upcoming edition of SIRC express their thoughts on the main issues that the industry needs to discuss, and their expectations for the event.
Willis Re International chairman James VickersThe SIRC is coming at a pivotal movement for the wider Asian insurance industry as it grapples with a range of issues, some company specific but others with wider economic and societal impacts leaving many primary companies wondering if the global reinsurance industry is still willing and able to be their long-term partners.
Whilst it is undoubtedly true that globally reinsurers have not been earning adequate returns on their capital, the sudden hardening in the Asian reinsurance market over the last nine months has left primary companies reeling with little breathing space to adjust to the new realities. Clearly a more staged approach by reinsurers would have allowed companies and local insurance markets more time to address their original underwriting and prepare their policyholders for a new environment.
Aside from repairing and resetting relationships, another issue reinsurers and their insurance company partners need to address is the issue of affordability for existing policyholders and the imperative to increase insurance penetration in all lines of business in virtually all bar the most advanced Asian insurance markets.
Impressive insurance premium growth rates in many markets driven by expanding local economies and the modest tailwind of inflation are masking stagnating insurance penetration rates. There is no quick fix, but stronger partnerships with reinsurers to help develop attractive affordable policies leveraging advanced digital underwriting and distribution approaches is clearly important to adding value to their clients or reinsurers risk seeing their role being diminished to being pure capital providers.
In the same vein, the nascent public-private insurance initiatives in Asia which offer so much potential have in many cases have not achieved their potential or sadly never achieved traction despite much creative effort and access to capital. The benefits to wider society of such schemes are not in dispute but the ability to execute needs to be addressed by a more joined up approach from the private sector when addressing the public sector.
The most important role of the SIRC which has been heighten by the stresses of the last nine months remains, as always, to give all parties a chance to discuss openly their own challenges and frustrations to ensure that expectations are properly managed for the 1.1.2024 renewal season and realistic goals of what is achievable set out leading to long term stable trading relationships.
Swiss Re CEO P&C reinsurance Urs BaertschiAt a time when insurers are facing increased risk, volatility and uncertainty, reinsurers must look for ways to partner beyond just offering capacity, including having a healthy dialogue and exchange to find new ways to facilitate growth and pursue new opportunities. This is certainly true in Asia, and in particular emerging Asia, where the region remains well-positioned for growth due to increased exposures, higher influence of data, further closing of the still-high protection gap, and the development of new products tailor made for local markets.
The SIRC has been a longstanding forum for the industry to connect on these important topics. This will be my first in-person SIRC, and I look forward to personally connecting with our clients and business partners to discuss their biggest priorities.
AXA XL CEO reinsurance Renaud GuidéeTop-of-mind for all global reinsurers is how the global reinsurance market is changing; what will happen at the forthcoming 1/1 and 1/4 renewals and what that means for Asian reinsurance buyers. It will be important to understand how each of us approaches the local hardening markets and how we are able to support clients and add value.
At a more micro level, I think there is a discussion to be had concerning the data we need as reinsurers at a more granular level to enable us to assess risks more effectively and work with our clients towards mutually viable solutions.
A question in my mind is how we, as a reinsurance community, support primary companies and our own clients in Asia with their energy transition strategies.
Regulation across many individual countries in Asia is gearing up to address the issue, particularly in Singapore, but every country in the region places a different emphasis on the pace of transition. We have to be able to support our clients in each market.
I believe this will be an important event for the Asian (re)insurance market. It’s the chance to spend time with clients, brokers and peers to exchange views, to really understand how the market is changing, and to see how global trends are impacting the Asian markets. I expect the event to be even busier than past years and the sessions and conversations to be of a high standard.
AIR
Once again Asia Insurance Review (AIR) will be the official media partner of the SIRC for 2023 – with regular updates on the progress of the work of the SIRC executive committee featuring in AIR’s various media.
To coincide with the start of the SIRC, the 27th Asia Insurance Industry Awards 2023 will also be held in Marina Bay Sands Expo & Convention Centre in Singapore on the evening of 30 October 2023.
The market-leading AIR eDaily will carry news of developments on a regular basis as they happen.
Registration is now open on the 19th SIRC website at
https://www.sirc.com.sg with early registration rates applicable until 31 August 2023.
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