The (Re)in Essence
Thursday 22 Feb 2024 edition
• The Australian Treasury is consulting over plans to bring in climate disclosures for firms with revenues as low as AU$25m (US$16.38m) a year by 2027.
• Australian disclosure standards have been developed by the AASB and are intended to dovetail with IFRS S1 and S2 which came into force at the start of 2024.
• The ICA called on the government to work with insurers to identify and manage ‘nature-related risks’.
• Industry body also set-out a ten-point action plan in relation to the government’s 2023 National Electric Vehicle Strategy.
• The IRDAI issued draft guidelines requiring cedents to collect collateral for reinsurance transactions with Cross Border Reinsurers (CBR).
• New guidelines set to be implemented from fiscal year 2025-26.
• Guidelines issued in the context of IRDAI proactively trying to encourage international reinsurers to establish onshore operations.
• Cedents will need to secure collateral for reinsurance transactions with CBRs, either through an irrevocable Letter of Credit (LC) or withheld premiums/funds.
• The LC amount depends on the CBR's credit rating: at least 80% for A- or above, and 100% for below A-.
• IRDAI seeks stakeholder feedback within 15 days before moving on to the finalisation of the rules.
• GlobalData projects Hong Kong's personal accidental and health insurance segment to grow at a 7.4% CAGR from 2024, reaching HK$28.5bn (US$3.6bn) in 2028.
• Growth drivers include increased health awareness, an ageing population, inflation-driven premium hikes, and continued interest from the Mainland Chinese market.
• Rising healthcare costs have led to a reassessment of risk exposure and potentially higher premiums
• Cyclone Lincoln previously caused heavy rainfall in NT, with flood warnings for Gregory and Tanami.
• Lincoln is predicted to reintensify to a Cat 2 cyclone, with wind gusts possibly hitting 140km/h.
• Residents in North WA advised to prepare for gales from Friday to Saturday.
• Emergency services focus on Indigenous communities, mine sites, and tourism operators.
• Event is part of a series of weather challenges in AU, including heatwaves in WA and Tas, fire in VIC and Tas, and flood warnings in QLD.
