A tale of two markets
Australia
APRA's new regulations to aid market discipline and sustainable growth
Australia's reinsurers navigate falling prices and rising climate stress
ARPC's cyclone pool passes its first real stress test
Favourable winds in general insurance and regulatory shifts in life segment define market
Siloed data unintentional, but make outsized impacts on insurers
Climate change driven complex risk scenarios require innovative solutions
Australia's InsurTech segment is maturing sustainably
AI continues to drive Australia's digital transformation
Brokers: Admirable performance and satisfactory service keeps them relevant
Satellite data transforms parametric (re)insurance solutions
Indonesia
Navigating Indonesia's reshaped reinsurance industry
Regulatory reforms are a game changer
Indonesia life insurers shift towards protection as unit-linked demand wanes
Indonesia's insurance brokers move towards advisory-led model
Indonesians redefine financial security as lifespans lengthen and costs increase
Parametric insurance and supply-chain partnership can close agricultural protection gap
Indonesia moves toward policyholder protection
ICIEC strengthening Indonesia's trade, investment and sustainable growth through Shariah-compliant risk solutions
Malaysia at critical transition point in motor and EV claim digitalisation
India's motor insurance being reshaped by increasing EV adoption
Philippine motor insurance's road to better protection
Life & health
Public-private partnerships crucial for individuals to live longer lives with purpose
Shifting to the centre of the financial planning conversation
General
Nepal: Agricultural and livestock losses from Bhotekoshi disaster rise to US$15m, and still counting
Continued hostilities in the Middle East drive proactive risk management in APAC
Redefining embedded insurance: Cover at the right place, at the right time
Interconnected climate risks mean insurers should adopt an integrated approach
AI adoption puts greater scrutiny on insured workflows
Asia's population map matters for insurers
Floods, urbanisation and the new geography of risk
New Maritime Law is reshaping marine, cargo and trade credit insurance
Interconnected aviation risks now intersect at multiple jurisdictions and capital markets
Insurance as an infrastructure for economic resilience
Emerging risks redefine actuarial domain
Asian
Hong Kong unveils first five-year plan as insurers welcome healthcare and insurance priorities
Singapore: Less than a fifth of respondents have coverage designed to protect against climate related risks
South Korea: Regulator launches consumer protection drive as complaints surge
Southeast Asia: WHO regional committee agrees to ramp up progress towards Universal Health Coverage
Digital footprint data seen to improve cyber claim prediction
Products and Alliances
People on the move
By Cheng Xin Yap, Tharan Ganesan, and Tananya Santipinyolert
Recent floods in major cities around Southeast Asia and other parts of the world have reopened the conversation on flood coverage in insurance products. This year alone Malaysia, Pakistan, and South Korea have all witnessed the worst floods to hit their shores in decades. As it stands, it is estimated that only 18% of all economic losses from floods in the past decade were insured.
A specially curated webinar led by Milliman US-based data analytics specialists
Well-managed actuarial outsourcing offers a viable solution to meet the increasing demand for actuarial resources
By Subhash Khanna and Shamit Gupta
No insurance product has been as adversely affected by the COVID-19 pandemic as travel insurance. Travel and social restrictions both within and without countries were introduced and are still in force in an effort to curb the spread of the virus. With the lack of travel came a precipitous drop in travel insurance premium volumes. However, global vaccination rollouts have provided a glimmer of hope for worldwide travel, sparking a conversation on the evolution of travel insurance in a post-pandemic world. In this brief article Milliman consultants explore how ASEAN countries have been gradually opening up their borders, along with the progress shown by insurers in the region to adapt to the evolving situation and its repercussions for the travel insurance products of tomorrow.
Over the past two decades our lives have been transformed by the information-rich Internet. At the hearts of digital giants like Google, Facebook, Amazon, Airbnb and Netflix we often find some ranking and filtering algorithms that use customer attributes to improve and customize predictions.
By Lalit Baveja, Principal and Senior Healthcare Management Consultant, Milliman
Last year, Milliman developed a Hong Kong fulfillment ratio index to understand the gap between illustrated non-guaranteed benefits at point of sale and actual non-guaranteed benefits declared by life insurance companies in Hong Kong.
Milliman’s annual study on reported year-end 2019 embedded value (EV) and value of new business (VNB) results for 53 major multinational and domestic life insurers across Asia was released in August 2020.
Medical inflation is a key driver of health insurance costs which in turn lead to premium increases. Health insurance companies are continuously looking for ways to manage medical inflation better to keep premiums competitive for customers and to mitigate lapses.
The first edition of Milliman’s Life insurance capital regimes in Asia: Comparative analysis and implications report was published in July 2019. Well received by the market, as the first of its kind, the report has been referred to and cited several times over the last year. In view of the pace of change in, and increasing focus on, regulatory (and economic) capital across the region, Milliman has compiled an updated report a year later.
In Indonesia, insurance compliant with Syariah principles can be sold through either a Syariah business unit or “window” of a conventional insurance company or, less commonly, through a standalone Syariah insurance company. Insurance Law 40, enacted in 2014, mandates insurance companies to separate their Syariah windows from their conventional business into a separate entity, to “spin-off,” when:
Insurers and reinsurers have been outsourcing actuarial work to captive units or third-party service providers for several years. Recently the industry has witnessed renewed interest in actuarial outsourcing, with an increasing number of companies either setting up new outsourcing units or expanding their existing ones. This trend is especially true for life insurance companies, especially in light of increasing regulatory and reporting requirements, including International Financial Reporting Standard (IFRS) 17, long-duration contracts targeted improvements (LDTI), and new risk-based capital regimes in Asia