With the deepening complexity of the risk landscape in Asia, Todd Wilhelm, AXA XL’s newly-appointed Head of Specialty for the region, has made it his priority to look for new ways of developing innovative risk solutions in the region.
“Businesses are increasingly looking for ways to mitigate their exposures while optimising their risk transfer strategies. As a result, there’s a heightened demand for solutions that go beyond traditional insurance offerings, such as risk engineering, data analytics, and proactive risk management tools,” says Todd.
The experienced AXA XL executive head assumed his current role at the start of September, taking over from Mark Houghton, who has now left the company.
Wilhelm was previously Head of Property & Casualty, Marine and Aerospace for Asia. He retains his competence for marine and aerospace alongside his new portfolio.
Such a focus on innovation is unsurprising. For the past few years, insurers and consultants have been warning about the rapid pace of change within the risk landscape.
In a paper published at the end of September, Deloitte said: “As risks become more complex and unpredictable and consumers more empowered, particularly with generative AI tools at their fingertips, insurers can no longer evaluate risks through the rear-view mirror… [They should] develop a more forward-looking approach to risk modeling, assessment, analysis, and mitigation.”
With its many divergent markets and regulations, Asia’s insurance sector is particularly prone to the impact of emerging risks. Heightened competition in places such as Indonesia, the Philippines and Thailand means that, unless insurers are fully on top of the risk they are underwriting, they may be forced out of the market.
“Clients are seeking more efficient placements of their risks with insurers that provide comprehensive claims and risk consulting services,” says Wilhelm.
Todd Wilhelm
Head of Specialty, Asia at AXA XLDeepening partnerships
Axa XL’s approach in the region is to foster deeper relationships with customers and distribution partners.
“The aim is to drive innovation in risk solutions, ensuring that we stay ahead of evolving risks and can offer robust support to our clients,” says Wilhelm.
The insurance executive says that there are significant growth opportunities in areas such digital transformation, sustainability, and emerging risks such as cyber threats and climate change. However capitalising on such opportunities requires a tailored approach to clients’ evolving needs.
“With our strong market presence and deep industry expertise, we can continue to anticipate and address our customers’ requirements as the risk landscape evolves. It’s about ensuring that we remain agile, innovative, and responsive to the unique needs of each market,” says Wilhelm.
Todd Wilhelm
Head of Specialty, Asia at AXA XLThe increasingly complex risk landscape has seen a growing awareness among businesses about the total cost of risk, according to Wilhelm.
He says that there has definitely been an increase in the complexity of risk in recent years, with with views shaped by the experiences of the pandemic, cyber disruptions cyber, supply chain bottlenecks, the evolution of artificial intelligence, climate change and geopolitical instability.
“Because of these events and a continuing increase in awareness, I believe businesses are beginning to expand their view of risk simply beyond the traditional cost of risk transfer, i.e. insurance products,” says Wilhelm
At the same time, reinsurers have been steadily increasing rates over the past couple of years, demanding robust underwriting discipline before they will lower prices.
Wilhelm says that this growing awareness of cost “is driving a shift towards a partnership approach, where insurers work closely with clients to tailor solutions that address specific risk profiles”.
As businesses adapt to new technological and regulatory landscapes, “cyber insurance, environmental liability, and innovative parametric products” are becoming increasingly relevant for clients, says Wilhelm.
Towards the 1/1s
Like others on the market, AXA XL expects the treaty renewal negotiations in January to be relatively smooth.
“The outlook for APAC’s insurance market remains cautiously optimistic despite the current environment of increased competition and softening rates in many product lines,” says Wilhelm. “We anticipate that 1/1 renewals will see relatively stable rates, with downward pressure in product lines where rate adequacy is well above 100%.”
Wilhelm says that improved underwriting discipline and a focus on profitability means that “the market will maintain a balanced approach as it reaches its price adequacy thresholds”.
He adds that the key will be to strike a balance between “seizing growth opportunities and maintaining profitability”.
This explains why Wilhelm and the team at AXA XL are so keen to promote a partnership across the region, with the core focus being on developing new innovative solutions.
Todd Wilhelm
Head of Specialty, Asia at AXA XLDivergent markets
Each market in APAC presents unique opportunities and potential, says Wilhelm: “While there are some macroeconomic similarities across the region, each country has its unique economic landscape that influences its policies and impacts. Our focus remains on adapting our underwriting strategies to the specific circumstances of each market, ensuring we effectively manage risks and seize opportunities, regardless of broader economic shifts.”
One country that stands out at the moment is India, due to its robust economic growth and the strategic development of GIFT City, which is positioning itself as a global hub for financial services.
There are also significant opportunities in Southeast Asia and China, driven by economic development and increasing demand for specialized insurance solutions.
“The key lies in identifying the right niches within these diverse markets where we can leverage our expertise to deliver value to our clients,” says Wilhelm. “Underwriting in APAC is fundamentally guided by risk assessment, data analytics, and market-specific conditions.”
