Climate risks and rising costs are widening protection gaps across Asia's insurance market, driving companies to captives and self-insurance and posing a challenge for insurers.
The talks also cover potential funding mechanisms for the scheme, including the use of disaster relief funds or small deductions on utility bills, according to a government official cited by Reuters.
Captive plays a key role in parent company's risk framework, though premium volumes may decline in 2025 due to rate softening and shifts in capital spending.
