Ironshore ups political risk capacity for APAC amid ongoing uncertainty
Specialty insurer Ironshore has expanded its political risk business lines in Asia-Pacific, by increasing capacity for its Singapore-based political risk and trade credit unit from $15m to $50m and hiring a new underwriter.
Sam Lim joins from AIG and will report to Boo Hui Yun, managing director of Ironshore Asia-Pacific.
The extra capacity is a result of greater concern about emerging risks and growing political uncertainty in the region, said Mr Hui Yun.
The political landscape in the region has experienced a particularly volatile time of late. Most conspicuous is North Korea and its leader Kim Jong-un whose frequent missile tests have ratcheted up tension with both neighbouring states and also international powers such as the US.
South Korea has suffered a political corruption scandal that saw previous president Park Guen-hye removed from office to face trial. And in the Philippines, controversial leader Rodrigo Duterte has seen his approval ratings slide from 66% to 48% in his 16 months in office, largely as a result of a violent drugs war that has claimed thousands of lives
Even in more stable states like China, where Xi Jinping has recently hosted the 19th Annual Congress of the Communist Party, concerns about political interference in the corporate world remain to the fore.
For example, a recent report in the Financial Times claims that China intends to revive the use of ‘party committees’ in joint ventures with foreign insurance companies, meaning that decision-making could be increasingly subject to party approval.
“Insurance industry appetite in Asia for specialty lines products dedicated to uncertain, emerging risks is driving heightened market demand,” said Mr Hui Yun. “We recognise the value of broadening our reach by increasing our capacity throughout the region, with Sam now on board to support Ironshore’s growth in this business lines portfolio.”
Ian Rouse, head of political risk and trade credit for Ironshore Asia-Pacific, welcomed the appointment of Mr Lim, adding that his track record in developing specialty lines in the region will help Ironshore achieve its objective of offering protection for both domestic and cross-border exposure to government actions and political risk events.
