The (Re)in Essence
Wednesday 21 Feb 2024 edition
• Parametric insurance has played a key role in improving agricultural resilience in emerging Asia.
• Industry players say product requires bespoke distribution approach due to problems, such as drawbacks of bancassurance model and indemnity insurance fraud, to close insurance gap.
• A seed insurance programme in the Philippines has been successfully rolled out by a partnership of Bayer, Pioneer, and WRMS.
• Parametric solutions is set to replace agri indemnity insurance in Southeast Asia over ‘the long term’.
• 82 of 145 Chinese non-listed insurers reported profits in 2023, according to a state-owned newspaper.
• P&C segment generated 413bn (US$57bn) yuan in revenue, with 60% concentrated in top ten insurers.
• P&C segment also saw net profit of 4.74bn yuan (US$658m), however only 35% achieved COR beneath 100%.
• Non-listed life segment reported a net loss of 14.2bn yuan (US$1.9bn) due to macroeconomic downturn, weak investment market, and reduced underwriting income.
• Non-listed reinsurers posted profits of 1.43bn yuan, with half achieving underwriting profits.
• S&P confirmed 'AA-' credit ratings for Chubb Japan, with a stable outlook.
• Entity seen as crucial to Chubb group's international expansion strategy.
• For the 1H of FY 2023, insurer saw 4.6% increase in net premiums written and combined ratio improvement to 81.7%.
• The company benefited from a recovery in travel insurance, growth in commercial insurance, and reduced COVID-19 and cat-related losses.
• Fitch affirmed Taiwan’s KGI Life’s IFS Rating at ‘A’ with a stable outlook.
• Insurer holds 8% market share and is Taiwan’s fifth-largest insurer.
• VNB margin has increased to 34.3% in 1H23, up from 27.1% in 1H22.
• Strategic focus on higher-margin protection products is expected to keep underwriting profitability stable.
• Bancassurance, primarily through KGI Bank, contributed to 58% of first-year premiums in 1H 2023.
• In an interview with AsianInvestor, Junior Cho emphasised the importance of assessing investee companies' to ensure they have climate change policies and oversight.
• Cho said Zurich employs qualitative and quantitative ESG assessment methods and collaborates with external data providers as part of framework.
• Comments come amid increased climate disclosure requirements being implemented both in Malaysia, by the JC3, and globally through standards such as IFRS S1 and S2.
