Monday 18 March 2024

• Lloyd's publishes a report on the cyber risk impact due to generative AI and large language models.

• It predicts a rise in the frequency, severity, and diversity of cyber losses in next 12-24 months.

• Report highlights a 'pivotal breakdown' in AI governance following the release of 'unrestricted frontier' models, like Llama2 in July 2023.

• These models greatly reduced inherent safety rails, including cost, model governance, and computational barriers.

• Key cyber risk areas due to shift are vulnerability discovery, campaign planning, risk-reward analysis, and single points of failure.

• Report calls for a multi-faceted approach involving insurers, businesses, government, and society to address emerging cyber threats.

• The Philippines Insurance Commission (IC) increased coverage limits for compulsory motor vehicle liability insurance.

• Third-party liability coverage has been raised to Php200,000 (US$3599) from Php100,000.

• Death indemnity limit has been increased to Php200,000 from the previous combined amount of Php100,000.

• No-fault indemnity coverage has been doubled to Php30,000 from Php15,000.

• New coverage for incidental expenses up to Php10,000 has been introduced.

• Premium rates for CMVLI to remain unchanged, but adjustments may be considered in future.

• The eight 2023-2024 Life Insurance Association of Singapore Committee members will continue in 2024-25.

• Prudential's Dennis Tan remains as President, with AIA's Wong Sze Keed and Etiqa's Raymond Ong as Deputy Presidents.

• This year, Committee aims to improve financial literacy, narrow protection gaps, innovate with customer-centric products, and enhance sustainability efforts.

• LIA launched a Guide to Medical Underwriting for Life Insurance to help consumers understand the underwriting process.

• AM Best affirms Ping An P&C's FSR at 'A' (Excellent) and ICR at 'a+' (Excellent), with a stable outlook.

• Chinese insurer recorded an underwriting loss in 2022 for the first time in over a decade, attributed partly to credit and guarantee insurance line, so has reduced its exposure to the line of business since then.

• The company is expanding in other business lines, leveraging new technologies for efficiency and risk management.

• The company recorded an average ROE of 16.2% from 2018 to 2022.

• Insurer also has a large, liquid, and diversified investment portfolio, mainly in bonds or fixed-income funds.

• AM Best affirms KBFG China's IFS rating at 'A-' (Excellent) and ICR at 'a-' (excellent), with a stable outlook.

• Subsidiary of South Korea's KB Financial Group focuses on Korean business interests in China.

• Claims over the past five years experience volatility, mainly due to large commercial account focus and small net earned premium base.

• A significant commercial fire loss in 2023 had minimal affect on underwriting result, but impacted statutory solvency position due to increased reinsurer counterparty credit exposure.

• The company expects an improvement in its solvency ratio through 2024 as it settles reinsurance receivables.

• AM Best reaffirmed Fidelity Life Assurance's IFS rating at 'A-' (Excellent) and ICR rating at 'a-' (Excellent) with a stable outlook.

• Operating performance deemed "adequate", with five-year average ROE of 1.0%.

• Earnings impacted by integration and transaction expenses of Westpac Life acquisition, but future improvement expected through increased operational scale and enhanced technological capabilities.

• Strong balance sheet supported by the highest level of risk-adjusted capitalisation as per BCAR.

Lau is a UK-qualified actuary and brings over 20 years of (re)insurance experience to his new role.