Building on last year’s focus on cross-sector collaboration, data-driven insights, advanced modelling, and skills development to enhance regional risk resilience, speakers at the Global Asia Insurance Partnership (GAIP) Summit 2025 shifted discussions from theory to tangible outcomes.
Key initiatives supporting this effort include the Asia Risk Platform and the Capacity Building for Risk Resilience programme, which strengthen data, modelling and workforce capabilities.
GAIP chairman Yoshihiro Kawai opened the summit by highlighting the urgent need to address the protection gap across Asia, the world’s largest insurance market.
Speaking to industry representatives, regulators, policymakers, academics and international bodies, he noted that the region faces nearly $1tn in unprotected risk, presenting both a major challenge and a significant opportunity to expand insurance coverage and advisory services.
Mr Kawai highlighted the unique role of the Global Insurance Partnership (GIP), describing it as “a unique platform for frank dialogue and actionable solutions” that brings together regulators, industry, and academia.
“Insurance is not only risk coverage but also a tool to reduce risk, prevent losses and provide fiscal solutions,” he said, urging stakeholders to rethink its role in the broader purpose of insurance.
During a panel discussion on the need for multi-sectoral collaboration in addressing protection gaps, GAIP external expert Craig Thornburn highlighted health and Nat CAT as significant in the APAC region in terms of the magnitude of protection gaps.
“When we began this work, we found that conversations about protection gaps often led to misunderstandings: one person might be referring to health, another to Nat CATs, yet both believed they were discussing the same thing. In reality, health is a very large issue here,” he said.
“Protection gaps in general remain wide, driven by low insurance penetration, the limited scope of public safety nets, and economic development reshaping the region’s risk profile. Alongside this, we face the challenges of geophysical and climate change,” Mr Thornburn said.
Allianz Asia Pacific regional CEO Anusha Thavarajah spoke about the evolving risks in the insurance industry.
“On the climate side, we see rising temperatures, too little or too much rain and increasingly unpredictable weather. On the health side, non-communicable diseases are on the rise. It feels like we are always chasing something we cannot quite catch because it keeps moving faster,” she said.
“Think about tariffs: the costs of goods, health services, supply chains—all are increasing. Yesterday tariffs might have been 10%, then suddenly 50%, then back to 10%. This political uncertainty adds another layer of complexity.”
“What matters most is that leaders—insurers, governments, development banks—come together to identify the most critical risks, ask what we can do to slow the pace of economic loss, increase insurance penetration, and then act decisively,” Ms Thavarajah added.
Insurance Commissioner of California Ricardo Lara said the state is moving away from decades of outdated rules that relied solely on historical data to set rates, reforms he described as essential to protecting consumers amid worsening climate risks.
Speaking at the event virtually, he noted that regulators can no longer be “quiet agencies” and must instead act as first responders to disasters such as wildfires, floods and extreme heat, ensuring data accuracy and enforcing claims payments.
“After more than 30 years of using backward-looking risk assessments, California, in December 2024, overhauled its framework, allowing catastrophe models and reinsurance costs to be included in rate filings. Insurers have already submitted new filings under the system, signalling renewed appetite to expand in the state,” he said.
The Global Asia Insurance Partnership Summit 2025 runs from 15-16 September 2025 in Singapore, with Asia Insurance Review as the official media partner.