Tuesday 12 March 2024

• A public inquiry into the flooding that took place in 2022 concluded in February, during which insurers were roundly criticised for their handling of claims.

• According to a report from the Actuaries Institute, 12% of households are now “affordability stressed”.

• Some insurers are no longer prepared to underwrite certain parts of the market, increasing pressure on the government to find a long-term solution to the problem.

• But long-term solutions can be costly, so there is a balance that needs to be struck.

• This means that short-term innovations are still an important part of the ecosystem, but they should not be allowed to eclipse the government’s longer-term vision.

• Aon report spotlights divergent trends in Q4, with APAC segments split between hard and soft market dynamics.

• Australia and China saw moderate price increases, while rates stable in Hong Kong, Singapore, and Thailand.

• Japan saw rate increases of 11-20% for casualty placements and nat cat risk, with limits down and deductibles up.

• Capacity generally strong, with new market entrants adding competition.

• Underwriting discipline evident, except in China where insurers showed more flexibility.

• Motor rates moderate across most of APAC, excluding HK, while Cyber was moderate-to-soft.

• Aon's five global trends to watch: cyber, clean energy, persistent inflation, worker-driven market, and parametric.

• Hong Kong's general insurance industry forecasted to grow to HK$85.6bn (US$10.95bn) by 2028 at CAGR of 6.3%, according to GlobalData.

• Economic recovery, increased inbound tourism, and rising health awareness expected to drive growth, though caution advised regarding volatile market conditions and inflation.

• FWD Group increases its stake in FWD Takaful Berhad to 70%, from 49%.

• Employees Provident Fund retains a 30% share while JAB Capital Berhad exits its investment in FWD Takaful.

• FWD Group first entered the Malaysian market in 2019, with Southeast Asia a key market for the group, where it ranks among the top five insurers and bancassurers.

• Australian Government announces plans to introduce a financial sector regulatory initiatives grid, which aims to streamline regulation within the financial services sector.

• Grid will serve as a rolling, 24-month program of initiatives relevant to banking, credit, insurance, superannuation, investment, payments, and capital market entities.

• Grid inspired by a similar framework in the United Kingdom.

• The Insurance Council of Australia (ICA) announced support for the initiative and its predictability.

• DB Insurance, Hyundai Marine & Fire, Samsung Fire & Marine, and KB Insurance collected 1.04 trillion won (US$793m) in overseas premiums last year, surpassing 1 trillion won for the first time, reported Korea's pulse news.

• DB Insurance led with 571.5bn won in overseas premiums.

• Overseas premiums accounted for only 1.2% of the total direct premiums written by the four insurers, amounting to 77.7 trillion won as of the end of 2022, signalling potential room for growth.

Owen Yin (pictured middle) appointed as Regional Director for China, taking over responsibilities previously held by Zeng (pictured left), while Jack Zhao (pictured right) will be promoted to the role of Underwriting Manager - Specialty Liability.

Xie is promoted to the leadership position from her role as Client and Distribution Leader, Asia.

Marwah joins from FWD where she was Vice President, Digital Bancassuarnce.