Cyber and natural catastrophe risk will be a big focus for the Singapore risk and insurance market in 2016 as the Monetary Authority of Singapore (MAS) sharpens up its rules for financial institutions and works with the insurance sector to try and encourage the development of more effective risk transfer options in these key risk areas.
China’s financial vulnerabilities and the transition to what President Xi has called the ‘new normal’ were identified as big risks for 2016 by many of the participants in the World Economic Forum’s (WEF) annual Executive Opinion Survey.
Business interruption (BI), including supply chain disruption, remains the top worry for Asian risk managers according to Allianz Global Corporate & Specialty’s (AGCS) fifth annual Risk Barometer survey.
If ratified by all members, the Trans-Pacific Trade Partnership (TPP) could boost regional gross domestic product (GDP) by more than $38bn during the first two years of implementation, according to Ludovic Subran, chief economist with global trade credit insurance group Euler Hermes.
Parima held its second Annual Conference in Singapore in November, attracting more than 500 delegates to what has rapidly become the number one risk management event in the Asia Pacific region. Commercial Risk Asia launched at the event, with the support of the Association. We report on some of the main discussions about the evolving risk management profession and insurance management market that were held during the event.
The Asia Pacific captive market is expected to grow rapidly in the near future as companies across the region wake up to the cost savings and risk management gains that can be made through the use of these self-insurance vehicles, agreed experts at the Pan-Asia Risk & Insurance Management Association (Parima) annual conference in Singapore.
Marsh Captive Management Solutions is the captive arm of the global broker and is the market leader with more than 1,200 captives under management worldwide, for which it manages managing premiums in excess of $40bn.
Many countries in the Asia Pacific region are currently working on Solvency II-style risk-based capital adequacy and reporting regimes for the insurance sector.
Panellists on the captive debate at the Parima conference were asked if Asia Pacific risk managers should consider the inclusion of employee benefits risks within their captives, as is increasingly the case in Europe and North America.
Hong Kong has been keen to establish itself as a captive centre, particularly for mainland Chinese companies, for some time—with limited success.