The accelerating climate change can increase the likelihood of widespread disruptions to the financial sector, including the insurance sector according to a new report released by the Bank for International Settlements (BIS). The new 50-page report Too hot to insure – avoiding the insurability tipping point released by the oldest international financial institution in November 2023 said while the global efforts to transition to net zero greenhouse gas emissions are commendable, their impact in slowing climate change is still uncertain. The report said, “A major complicating factor is the uncertainty over future climate change impacts, which may unleash extreme events that have not occurred in the past for example due to climate tipping points.” Moreover, insurers aren’t generally making climate considerations explicit in their pricing and underwriting policies. Also, a growing number of insurers is retreating from high-risk areas. The trend is likely to continue as insurers become better aware of climate related risks and incorporate these risks in their pricing and underwriting approaches. The report said, “There is a chance that the global average temperature increase target under the Paris agreement could be breached, pushing the world, the global economy and financial systems into uncharted territory. “Efforts to facilitate a swift transition to a sustainable economy, including adequate risk adaptation, mitigation and coverage by economic agents, are therefore vital. Through their pricing and underwriting policies, insurers play an important role in both supporting climate risk mitigation efforts to transition to net zero, as well as in incentivizing risk adaptation measures.” the report said. It said an increasing number of insurers are publishing transition plans that set out how they intend to support climate risk mitigation, including adjustments to their underwriting policies. Some insurers are also pulling out from insuring greenhouse gases intensive sectors, and they do so in a gradual manner, recognizing that some high emitters are taking steps to reduce their emissions. At the same time, insurers can incentivize climate risk adaptation efforts through their pricing and underwriting policies by recognizing risk reduction measures in terms of reduced premiums or more favourable policy terms. Nevertheless, the insurance industry alone cannot mitigate climate-related risks – other actors such as governments, households and businesses need to play their part. Source: asiainsurancereview.com

The perceptions of business risks, from supporting staff to ESG regulation and economic uncertainty, are changing the global business risk landscape according to a new report by specialist insurer Beazley. The new report Spotlight on: Business Risks 2023 published in November 2023 has revealed that despite a challenging macro environment, business leaders are increasingly looking inwards at challenges related to managing staff and employees despite the growing threat of external risks facing global boardrooms. A press release issued by Beazley said the employer risk doubles with 22% of global business leaders saying this risk is the number one threat facing their organization this year, doubling from 11% in 2021. Yet, 1 in 4 (27%) boardrooms feel ill-equipped and unprepared to deal with it. As ESG regulation mounts, 1 in 4 (26%) global business executives feel unprepared to anticipate and respond to ESG risks. As the risks become greater for businesses, the research shows that almost half (42%) of global business leaders believe they will be operating in a high-risk environment in six months’ time, up from 31% this year. The report reveals that perceptions around business and executive risks, from employee risk to reputation management to ESG regulation, are changing the risk landscape for business leaders and over a third (35%) of global executives now plan to explore insurance options that include risk and crisis management as business challenges mount. The data, based upon a survey of 2,000 global business leaders by research company Opinion Matters, reveals that among the challenges organizations are grappling with, the growth of the #MeToo movement and a welcome increase in staff reporting workplace issues has led to a rise in allegations being made, and these factors appear to be drivers of concern. Additionally, a worsening of staff mental health post-pandemic has placed a greater emphasis on workplace support initiatives. Worryingly, 1 in 4 (27%) executives surveyed said they feel ill-equipped and unprepared to deal with today’s employer risks. Business leaders surveyed believe managing their reputations will become increasingly tough in the coming months, with 17% ranking this as their top risk today, rising to 19% in 2024. Beazley group head of specialty risks Bethany Greenwood said, “Global business leaders are dealing with a challenging array of new and persistent risks that threaten their business models. It might seem counter-intuitive that executives are increasingly looking inward at their workforce and workplace to meet today’s challenges.” The research shows that failure to comply with new ESG-related requirements, including related legislation or reporting requirements, is of greater concern for business executives in the US and Canada than in the UK and Singapore. Source: asiainsurancereview.com

The fragility of our world order and the hazards inherent in an increasingly interconnected world have been highlighted by events such as the COVID-19 pandemic, President Putin's invasion of Ukraine and global economic slowdown in the recent years. A survey which is part of a new report by Geneva Association shows that customers across the world’s six largest insurance markets (the US, China, Japan, UK, France and Germany) are concerned about future insurability – particularly for natural catastrophes, longevity and cyber risk. The survey found that over 50% of respondents expect it will become more difficult or impossible to get insurance. The new report The Value of Insurance in a Changing Risk Landscape says the existing volatility is expected to persist into the coming decades as geopolitical uncertainties grow, climate risks intensify and technology continues to advance rapidly. It says these trends are driving up systemic risk, challenging the traditional insurance business model of risk pooling and redistribution and, as we are already witnessing in some regions with climate risks, making insurance prohibitively expensive or – even worse – unavailable. The report advises that by providing services that go beyond traditional risk transfer – such as risk prevention services – and collaborating with governments to address the most severe risks, insurers can continue to safeguard societies in the face of a more complex and challenging risk landscape. The survey findings provide strong support for these approaches, with more than 80% of customers expressing interest in non-traditional risk services. The Geneva Association managing director Jad Ariss said, “The increasing intensity and impact of risks today, from climate to cyber, are creating testing conditions for insurers. Yet the case for the continued value of insurance is clear. By leveraging their expertise to offer services that help to mitigate risk and drive positive change among their customers, insurers can maintain, and even strengthen, their societal relevance.” The GA director socio economic resilience and author of the report Kai-Uwe Schanz said, “Our theoretical analysis found that climate and cyber risks in particular present major obstacles to insurability. Interestingly, they were also two of the top risks cited by customers when it comes to concerns around the unavailability and unaffordability of insurance. He said, “Encouragingly, our survey results also reveal considerable appetite among customers for additional risk services – such as prediction and prevention services – indicating a clear opportunity for insurers to expand their offerings.” Source: asiainsurancereview.com

< Back PIRA-IIAP-CPI WEBINAR SERIES SEASON 1, SESSION 2 Date: May 7, 2020 Speaker: Mr. Carl Ventura, Vice President, CPI Panelists Mr. Michael F. Rellosa, Executive Director, PIRA Mr. Francisco D. Papa, Jr., Executive Director, IIAP Press release https://www.pirainc.com/post/pira-iiap-cpi-webinar-series-season-1-session-2 Previous Next

THE PIRA SECRETARIAT PIRA serves its members through its Secretariat that provides technical studies and assistance. The Secretariat is composed of the following individuals: ​ Mr. Michael F. Rellosa Executive Director Mr. Rogelio J. Concepcion General Manager Ms. Ma. Agnes L. Silaya Accounting Manager ​ Ms. Marie Louise Lorenzo Communication Officer ​ Mr. Alexander D. Pablo Member Support Services Unit Manager ​ Ms. Carmencita R. Pineda Ms. Madelaine P. Tercero Ms. Shirley F. Dela Cruz Ms. Marilou C. Serrano Executive Assistants ​ Mr. Manolo M. Hilario, Jr. IT Specialist Mr. Josefino I. Monteclaro SRA Assistant Mr. Larry E. Vidal Mr. Gregorio M. Barrios ITSS Assistants ​ Mr. Jadeson J. Ortega Admin Assistant ​ Ms. Ma. Catherine E. Mercado Ms. Cielito L. Moncal Ms. Adelfa B. Sarzuela Accounting Staff ​

< Back PIRA-IIAP-CPI WEBINAR SERIES SEASON 2, SESSION 5 Date: Oct 29, 2020 Speaker: Ms. Geia Lopez - Industry Analytical Head Google Press release https://www.pirainc.com/post/october-29-2020-pira-iiap-cpi-webinar-series-season-2-session-5 Previous Next