Jessica Schappell knows the power of bad news. When it comes to cyber, Beazley’s head of Asia Pacific observes: “People here are certainly in tune. They read the news. They see actors are targeting clients, regardless of borders.”
Just days after speaking to (Re)in Asia, Japan was reeling from a cyberattack that crippled Asahi, threatening supplies of its iconic beer.
This incident also throws up a key challenge: changing mindsets.
Cyber coverage, Schappell argues, is not a “nice to have,” but essential protection in an increasingly volatile digital landscape.
Schappell certainly has her hands full since her appointment in July last year. While cyber is a major focus for Beazley, the Lloyd’s insurer also covers a diverse APAC portfolio of lines, including marine, energy, professional and financial lines, specialty risk, political risk, and trade credit.
It’s a substantial challenge, but one Schappell is well-equipped to handle, having dedicated her entire career to the insurance industry.
AIG-trained, Beazley honed
Armed with a marketing degree, the freshly graduated Schappell quickly learned the insurance ropes, recalling her ‘state of the art training’ with AIG’s associate programme.
Schappell recalls: “I really am grateful for that training, because I think that’s really what got me excited about insurance, even though it wasn’t initially what I had hoped to start out in.”
Schappell enjoyed a varied insurance career at AIG, experiencing directors and officers, employment practices liability and coverage litigation.
She joined the Beazley claims team in 2007 and is now relishing the APAC challenge.
What’s the big difference between her experience in Asian and US markets?
Schappell points out her time in the US was primary insurance, whereas Beazley is largely wholesale reinsurance.
She reflects: “Success really depends on building strong relationships with our brokers and our local student partners and trying to use that to stay connected to the end clients, which you’re a little bit naturally more removed from.”
On her broad vision, her goals include delivering profitable growth amid evolving risks, fostering career development for her 60-plus regional colleagues, and solidifying Beazley’s position as the specialist insurer of choice in the APAC region.
Schappell points out she is in the right place to carry out her ambitions, citing her 19-year tenure as evidence of a company which nurtures talent.
Cyber challenge
One of Beazley’s largest lines is cyber, one certainly keeping Schappell busy – cyber threats are escalating across Asia, with 29% of executives now ranking them as a top concern, according to a recent risk report from Beazley.
Despite this, Schappell explains that many SMEs still consider cyber coverage optional – a risky outlook in an era of rising ransomware and systemic risks. Beazley’s response is two-fold: full package solutions and educating businesses on the very real and present dangers they face.
Cyber risk blends into financial lines and professional liability, and even marine & energy. Schappell points out that while Australia leads in class actions, Hong Kong and Japan are increasing sustainability disclosure requirements. Risk management is crucial, especially regarding cyber incidents.
Even after the immediate impact, businesses may face shareholder lawsuits alleging inadequate preparation. She warns that many boards incorrectly assume general liability or D&O policies will cover cyber claims, failing to account for exclusions that create significant coverage gaps.
In marine and energy, Schappell sees the marine industry’s net-zero transition facing economic headwinds, while sustainability is deprioritised. Once again, the cyber risk is ever present as the ‘marine sector remains an underinsured target’.
Jessica Schappell
Head of Asia Pacific at BeazleyRegulation
To navigate APAC’s complex regulatory landscape, Beazley operates via a Singapore hub, explained Schappell. Underwriters stay close to key markets, partnering with local experts to track evolving requirements.
Combining global know-how with local expertise ensures tailored solutions for companies operating in the diverse region.
It’s a challenge but certainly worth it when considering what APAC brings: a rising middle class and growing SME sector with a large protection gap.
Schappell believes the ‘SME space really has this great need for education and accessibility’.
Healthcare liability is ‘right in our wheelhouse’, Schappell also points out. Medical providers are well served by Beazley’s E&O, professional liability product with cyber cover protection options.
Lloyd’s and future growth
And what does Schappell make of the Lloyd’s name, carrying that into Asian markets?
“Lloyd’s provides that credibility and deep capacity for really complex risks, and that’s in its DNA for over 300 years now,” she says.
Some clients may not have a long history with Beazley, she adds, pointing out: “Having that Lloyd’s name, that has hundreds of years of experience, can bring them comfort that there is this big name behind it.
“It also enables co-insurance with other specialists, that allows Beazley to retain its agility.”
Looking to the future, Beazley’s growth will come from cross-class specialist solutions. Beazley’s specialist cyber coverage can cut across a host of classes, offering value added such as incident response. It’s a comprehensive solution all in one place.
She concludes, “We use our integrated expertise and really use the backing of our global team to be able to come up with a holistic solution for a client to address some of their risk problems that they’re seeing”.
With the strength of Lloyd’s, the power of cross-class solutions, and a commitment to holistic risk management, Jessica Schappell and Beazley APAC are not just adapting to the future of insurance in the region – they are among the specialist Lloyd’s players shaping it.
