edition
• Aon survey shows 79% of APAC clients use or plan to use AI, but insurers have generally been slow to adapt to emerging AI risks.
• AI tools are enhancing cyber threats, leading to increased fraud and potential increase in loss ratios.
• (Re)insurers are developing AI-specific insurance products, but they remain niche and mostly outside APAC.
• Insurers face challenges due to a lack of historical data and clear definitions, but market demand may drive innovation.
• Fitch Ratings upgraded Fubon Life Insurance’s IFS Rating to ‘A’ from ‘A-‘, citing improved capital adequacy and a stable total capital base.
• Fubon Life’s market presence, strong financial performance, and shift to regular-paid policies under new regulatory standards contributed to the upgrade.
• The insurer’s RBC ratio increased to 336% in 2023, and its total capital grew to TWD506bn, although it remains sensitive to foreign-currency risk due to unhedged overseas investments.
• Moody’s warns that stress in China’s property sector could risk insurers’ profitability, especially due to high exposure to commercial real estate and insufficient loss provisions.
• Insurers face challenges in assessing the fair market values and required provisions for alternative investments due to complex structures and lack of public default data.
• Physical property investments face risks from declining rental yields and weak economic conditions, even in top-tier cities.
• The Chinese government’s efforts to stabilise the property market may offer some relief, but a sustained improvement in new home sales is not expected soon.
• Thailand’s general insurance industry is projected to grow at a CAGR of 4.5% from 2024 to 2028, reaching THB370.8bn (US$10bn) in GWP by 2028.
• Motor insurance, the largest segment, is expected to grow at a slower rate of 3% in 2024 due to a decline in car sales but will be supported by an increase in EV sales and regulatory developments.
• Property insurance is expected to grow by 9.4% in 2024, driven by government infrastructure projects, while PA&H insurance is projected to grow by 3%, supported by rising health awareness and medical costs.
• ICA supports strengthening the General Insurance Code of Practice, focusing on financial hardship, customer vulnerability, and claims handling.
• Proposed changes include premium relief, expanded definitions of vulnerability, and extended review timeframes for claims, especially after catastrophic events.
• ICA suggests waiting for current reviews to conclude before implementing changes and advocates for a principles-based Code.
• AXA Hong Kong and Macau and HK Express announce embedded insurance partnership, featuring “one-click” travel insurance during flight bookings.
• Partnership covers all markets served by HK Express.
