The EU-ASEAN Business Council (EU-ABC), an advocacy organization representing the interests of European businesses operating in Southeast Asia, has made several recommendations for ASEAN insurance regulators relating to digital access to protection, a growth-oriented regulatory environment, transition towards a low-carbon economy and de-risking green investments.
The recommendations are set out in a position paper titled “ Realizing Inclusive and Sustainable Growth in ASEAN: The Role of Insurance”. This spells out the insurance industry’s crucial role in achieving inclusive and sustainable growth in ASEAN – in line with the theme of Indonesia’s chairmanship of ASEAN in 2023 – “ASEAN Matters: Epicentrum of Growth”. The paper was launched ahead of EU-ABC’s annual consultation meeting with the ASEAN Finance Ministers and central bank governors yesterday.
The key recommendations outlined in the position paper are:
Regulatory framework
The paper also stresses the importance of a growth-orientated regulatory framework to extend insurance penetration rates. It encourages ASEAN regulators to draft regional guidelines on the supervision of digital insurance and introduce relevant local rules to improve consumers’ digital access to insurance.
As ASEAN makes moves to transition to a low-carbon economy, the paper also urges policymakers to consider how to work with the insurance sector on the financing of climate change mitigation action. The paper specifically notes that “realizing inclusive and sustainable growth in ASEAN requires strong commitments and joint efforts from all stakeholders. Insurers, with triple roles as risk managers, risk carriers and investors, have a vital role to play in the process.”
Commenting on the EU-ABC’s recommendations set out in the paper, Mr. Chris Humphrey, executive director at the EU-ABC, said in a statement yesterday, “Insurance is crucial for the economic development of ASEAN countries, providing individuals and businesses with financial protection against risks and uncertainties, as well as being a source of long-term development financing. This paper today from the EU-ABC provides clear recommendations for regulators and governments across ASEAN which, if adopted, would help the insurance sector play a clear role in realizing inclusive and sustainable growth in the region.”
The statement also said, “The EU-ABC stands ready to continue our collaboration with governments, communities as well as other stakeholders as we are all jointly committed to realizing inclusive and sustainable growth in ASEAN.”
Source: asiainsurancereview.com