ASEAN: Challenges prevail in 2023 for insurers in the region
Source: Asia Insurance Review | Feb 2023
Insurers will continue to have to deal with regulatory and financial reporting changes, specifically the advent of IFRS17 and ESG reporting, said EY ASEAN insurance leader Brandon Bruce.
Outlining the outlook for the insurance sector for 2023, he said, “Some of the main issues impacting insurance companies in Southeast Asia include rising interest rates, which will potentially affect premium income growth in 2023, as well as rising inflation and pressures from the cost of medical supplies and other goods increasing the cost of claim payouts.”
Mr Bruce also said, “As companies look to keep costs under control, we’ll likely see them putting additional focus on ensuring more seamless services by enabling technology across the delivery chain, as well as re-strategising the distribution base by enriching product offerings to the customer directly and via digital sales portals. Insurers will also maintain stringent claims management and controls and implement new tools to understand where the leakages are and plug them by understanding the drivers and main causes creating them, introducing better analytics capabilities and tightening processes.”
Mr Bruce also said that M&A in the industry will continue, with emphasis on stronger incumbents or new market entrants building a solid business in this part of the world, either by acquiring legacy businesses or via joint venture tie-ups. A