Following the long-term annual growth trend of 5-7%, global insured natural catastrophe losses may reach $145bn in 2025, mainly driven by secondary perils like severe thunderstorms, floods and wildfires, says Swiss Re Institute in its latest sigma report. Primary perils like hurricanes and earthquakes pose biggest risks, potentially driving insured losses to $300bn or more in a peak year. 2025 started with wildfires in Los Angeles, causing an estimated $40bn in insured losses. While these losses from a secondary peril are substantial, primary perils remain the biggest threat: when a severe hurricane or strong earthquake hits a densely populated urban area, insured losses in that year could be more than double the long-term loss trend. Swiss Re CEO P&C Reinsurance Urs Baertschi said: "In addition to helping clients with traditional risk transfer, reinsurers also provide data, risk insights and knowledge about where dangers lie. The reinsurance industry is a shock absorber when danger materialises into disaster and an essential discussion partner around risk awareness and risk prevention." Peak years, due to a few primary-peril events or the accumulation of both secondary-peril and primary-peril events, should not be considered an anomaly. The most recent peak year was 2017, driven by Hurricanes Harvey, Irma, and Maria. Since then, underlying risk has increased continuously with economic and population growth as well as urban sprawl, including in areas vulnerable to natural catastrophes. In addition, climate change effects are playing a role in compounding losses for some weather perils and regions. According to Swiss Re Institute estimates, some of the hurricanes from the early 20th century would cause losses well over $100bn if they were to strike today. For example, Hurricane Andrew in today's prices caused $35bn in insured losses in 1992. If a hurricane were to strike the same path today, it would cause losses nearly three times higher, due to economic growth, population increase and urban sprawl. Meanwhile, Hurricane Katrina, the costliest single insured loss event for the (re)insurance industry ever, would not cause the same destruction as 20 years ago. Insured losses would still reach around USD 100 billion due to rising housing and construction costs, but improved flood defences and a 20% decrease in local population along Katrina's path have significantly reduced exposure. Source: asiainsurancereview.com

By Herminia S. Jacinto It's that time of the year again — graduation time. Schools have just closed and there are now thousands of graduates who will be looking for job opportunities either in the country or abroad. These graduates are eager to earn their own money to spend for their dream cars, condo units, travel and other pursuits. The insurance industry is waiting for you, dear graduates, with open arms! There are 31 life insurance companies and 52 non-life insurance companies which need young and energetic employees to beef up their manpower. Insurance is a robust and growing industry. New products and new ways of doing business are best suited for the young. They need not worry about not being knowledgeable about insurance. They will be trained for the jobs that best fit them or they will learn while already doing their jobs. Training in the various facets of insurance can be provided by the Insurance Institute for Asia and the Pacific (IIAP) which celebrated its 50th anniversary last year. The institute has courses in marketing, technical underwriting, management and other soft skills. IIAP has also forged a collaboration with the other institutes in the Asean region to conduct online courses on various subjects and later be entitled to an Asian Diploma after completing the requirements. One will benefit from the interaction with the participants from Singapore, Thailand, Indonesia, Malaysia, to name a few. IIAP has partnered with the Chartered Insurance Institute of London to allow a graduate of our Basic Non-life Insurance Course to take the Advance Course after complying with some requirements. Source: manilatimes.net

The Insurance Commission (IC) has issued Circular Letter (CL) on the "Omnibus Guidelines on Investments", to enhance investment adaptability of insurers, reinsurers and mutual benefit associations (MBAs) to respond to the dynamic investment market environment. The IC also aims to further empower these regulated entities to make well-informed investment decisions to ensure the stability and growth of their respective financial assets while safeguarding the interests of their policyholders,” said Insurance Commissioner Reynaldo A Regalado. The umbrella guidelines consolidate CLs on allowable investments of the regulated entities, thus streamlining and updating the existing allowable investments framework. They also introduce a range of new allowable investments, which include structured products, debt securities issued by supranational organisations, and investment vehicles. The new CL mandates that each new allowable investment must meet minimum credit rating requirements or be listed on recognised exchanges, which provides a layer of transparency and market oversight. Meanwhile, the CL also lifted the prior approval requirement under previous issuances for certain Philippine peso and foreign currency-denominated investments that meet accepted market-wide standards and have gone through external review processes and scrutiny, such as credit rating and listing on recognised exchanges, among others. “By issuing these new Omnibus Guidelines, we are addressing the bottlenecks that hinder timely investment decisions and strain regulatory resources,” Mr Regalado stated. Source: asiainsurancereview.com

Aon published its Q1 Global Catastrophe Recap - April 2025 yesterday, which analyzed the natural disaster events that occurred worldwide during the first quarter of the year. The report highlights Q1 economic losses of at least $83bn (Q1 2024: $54bn) – well above the 21st century Q1 average of $61bn – driven by California wildfires and other billion-dollar events, including multiple severe convective storm (SCS) outbreaks across the U.S., and deadly earthquakes in Myanmar and China. US economic losses accounted for around $71bn of the economic loss total, their highest since 1994 and significantly above the Q1 average since 2000 ($12bn). In contrast, Q1 economic losses in all other regions were below their long-term Q1 averages. Meanwhile, Q1 insured losses were forecast to be above $53bn – significantly higher than the 21st century Q1 average of $17bn and represented the second-highest total on record after Q1 2011. California wildfires contributed approximately $38bn, or 71% of the total insured losses. The figures suggest an insurance protection gap of 36%, the lowest Q1 value since 1990 (47%), predominantly due to high insurance penetration in the US, where most of the losses occurred. These estimates are preliminary as damage assessments continue, particularly in Myanmar.  Natural disasters killed more than 6,000 people in the first quarter of 2025, compared to 1,800 in the prior year period, with the vast majority (88%) of fatalities related to the Myanmar earthquake in March. All other events during the period caused about 700 fatalities in total. Aon head of catastrophe insight Michal Lörinc said, “The economic uncertainty presented by natural catastrophes, such as the devastating wildfires in California and the deadly earthquakes in Myanmar, underscores the critical need for comprehensive risk management strategies. At Aon, we are committed to providing data-led insights and next-generation analytical tools that empower both the public and private sectors to better prepare for and mitigate the impacts of these disasters. By leveraging our expertise in catastrophe analytics, we help our clients make informed decisions that enhance resilience and reduce volatility across their portfolios." Aon’s data, inflated to 2025, show that in 2024, global natural disaster events caused $374bn (2023: $402bn) in economic losses in 2024, driven by hurricanes and SCS in the US. This was 14% above the 21st century average and the ninth consecutive year of losses exceeding $300bn. Source: asiainsurancereview.com

Dear Colleagues, As we celebrate this sacred season of Easter, I together with the PIRA Officers and Staff, extend our warmest greetings to each of you, your families, and your teams. Easter signifies renewal, hope, and strength—qualities that resonate deeply within our industry as we navigate both current challenges and those on the horizon. In these trying times, it is essential that we reaffirm our commitment to unity and cooperation. Just as a chain is only as strong as its weakest link, our collective fortitude as an association and an industry relies heavily on our ability to stand together and support one another. Each member plays a crucial role in enriching the ecosystem of insurance and reinsurance in the Philippines. As we reflect on the spirit of Easter, let us draw inspiration from the resilience it embodies. The challenges we face are substantial, yet they are not insurmountable when we come together with a shared vision and purpose. Collaboration among our member companies is vital. By pooling our resources, knowledge, and expertise, we can fortify our response to the difficulties before us, creating a more robust and sustainable insurance landscape. I invite each of you to join me in this appeal for renewed impetus towards cooperation. Let us communicate openly, share best practices, and extend support to one another. In doing so, we can not only endure the trials we face but also seize opportunities for growth and innovation. Together, we can be more than just a network of insurers and reinsurers; we can be a united front that fosters trust and resilience within our industry and among the communities we serve. May this Easter inspire in each of us a renewed commitment to our shared mission and a strengthened bond among our member companies. Let us move forward with hope and determination, ensuring that we emerge from adversity stronger than before. Wishing you all a blessed and joyous Easter! Warm regards,

On March 11 2025, the Insurance Commission (IC) and the National Privacy Commission (NPC) issued Joint Advisory No 2025-001, or Considerations on the Use of Privacy Enhancing Technologies (PETs) in the Insurance Industry. The Advisory addresses the adoption of PETs in the insurance industry, which may supplement existing privacy-preserving practices to mitigate data privacy risks and ensure protection of personal data processed by personal information controllers (PICs) and personal information processors (PIPs). The Joint Advisory applies to insurance providers, insurance and pre-need companies, health maintenance organizations, mutual benefit associations, their respective agents, brokers, adjusters, intermediaries, all other entities under the regulatory control and supervision of the IC, and PIPs of the foregoing entities. The Advisory defined PETs as: A collection of digital technologies, approaches and tools that permit data processing and analysis while protecting the confidentiality, and in some cases also the integrity and availability, of the data and thus the privacy of the data subjects and commercial interests of PICs. Source: asiainsurancereview.com

The farmer from the surf town of San Juan, La Union province in northern Philippines has spent most of his life under the sun, working with his back bent, feet soaked in muddy water, while goading a carabao to plow and harrow the rice paddy. Now, he said, technology has taken over with advanced tractors and machinery, mostly donated by government bodies. “Farming is really a difficult job,” Mr. Abat, who had spent some time with his crops before sitting down for an interview — the dirt under his short fingernails was still visible — told BusinessWorld . “That’s why, if possible, I didn’t want my children to end up like me, wading through the mud.” Mr. Abat has sent his four kids to college, thanks to his hard work as a farmer. His children, like many others from farming families, have sought employment overseas or in offices where work is easier and pays more. Two of his children now work in the United Arab Emirates — one in the hospitality industry and another as a medical technologist. His eldest, however, helps with farming, making the patriarch feel a sense of pride and relief, knowing that at least one of his children is willing to carry on his legacy. The average age of Filipino rice farmers is 56 and climbing, and analysts predict a critical shortage of farmers in the next decade as young people show less interest in agriculture, threatening food security. The problem is compounded by increasing farm input costs. Fertilizers, pesticides, machinery and irrigation systems are becoming more expensive, eating away at farmers’ modest profits. Mr. Abat, who inherited his farmland from his parents, said the average cost of production per hectare of rice increased from P65,000 in 2023 to P75,000 in 2024, but his income has been stagnant. On top of this, the price of unmilled rice remains low, fluctuating between P20 and P22 per kilo, a stark contrast to high retail prices in urban markets. He laments the fact that middlemen and traders profit more than those who cultivate the land. “When we sell unmilled rice, the price is low,” he said. “But when we buy rice in the market, the price is high.” Inflation in the Philippines dropped to its lowest level in nearly five years in March, with the annual rate easing to 1.8% due to slower increases in food and transport costs, according to the Philippine Statistics Authority. This was down from 2.1% in February and 3.7% a year ago. For the first quarter, average inflation stood at 2.2%, comfortably within the central bank’s 2-4% target range. The government of President Ferdinand R. Marcos, Jr., declared a “food security emergency” on rice last month due to persistently high prices despite global price reductions and lower tariffs on rice imports last year. The Philippines faced a surge in hunger rates in December 2024, with more than a quarter of Filipino families experiencing involuntary hunger — the worst since September 2020 at the height of the coronavirus disease 2019 (COVID-19) lockdowns, according to the Social Weather Stations. PSA data showed agriculture and forestry lost the most workers year on year, shedding almost 950,000 jobs in February, mainly due to several typhoons that devastated farmlands. Marie Annette Galvez-Dacul, executive director at the University of Asia and the Pacific Center for Food and Agribusiness, said fewer people work on farms given low wages and rural-urban migration. “Many shift to off-farm jobs in cities, while mechanization, land conversion and climate risks make farming less viable,” she said in a Viber message. The decline in Filipino farmers threatens food security and increases reliance on imports, she pointed out.  “To sustain agriculture, the country must attract young farmers, modernize farming and improve rural livelihoods.”  Ms. Dacul also cited the need to secure farmlands, strengthen rural-urban connections and diversify the economy to keep the farming sector resilient amid the exodus of people to the cities. “Investing in mechanization, smart farming and climate-resilient techniques, along with regenerative farming practices, vertical farming and stronger food supply chains will help ensure long-term sustainability,” she added. The Philippine agriculture sector is struggling with slow growth, declining productivity and structural inefficiencies, according to a Philippine Institute for Development Studies (PIDS) report by economist Roehlano M. Briones published in December 2021. Farm sizes have been shrinking, leaving little room for expansion.  The country’s arable land was estimated at 12.44 million hectares, according to the PIDS study, citing data from the Food and Agriculture Organization. “Agriculture was the biggest employer of the economy in the mid-1990s but has since given way to services,” according to the study. “Its share in employment has been consistently declining.” TURNING THE TIDE The government should raise the productivity of farm workers to keep the sector competitive, Mr. Briones said. “The correlation between average daily basic pay and level of education tends to be stronger in industry and services than agriculture,” he said in the study. “It may well be the case that the long-term movement of workers out of agriculture represents the better educated trying to realize higher returns on human capital investment.”  The report recommended governance reforms, investments in research, improved credit access, mechanization, irrigation improvements, and trade liberalization. The state should also shift support from subsidies to long-term investments in public goods, Mr. Briones said. Jayson H. Cainglet, executive director at the Samahang Industriya ng Agrikultura (SINAG), said the key to encouraging future generations to pursue careers in agriculture lies in guaranteeing fair and sustainable wages. “You can only really attract young farmers if they can earn something,” he said by telephone. “You can’t romanticize farming by saying, ‘Oh, the country needs you for food security, for food self-sufficiency.’” “That kind of idealism doesn’t put food on the table. Farmers are discouraged when they experience low farmgate prices after investing months of hard work without guaranteed returns,” he added. The situation is compounded by the country’s increasing reliance on food imports, driving down the prices of local produce. Mr. Cainglet noted that the Philippines, once a top rice exporter, is now the world’s biggest importer of the staple. As a result, local millers could no longer compete with the lower landed cost of imported rice, leaving Filipino farmers at a disadvantage, he said. He urged the government to offer farmers low-interest loans since they are often at the mercy of their creditors. “But the real problem is that the government often says we don’t have enough funds. Still, we have to start somewhere,” he added.    He said the state could help farmers by guaranteeing them a floor price. For example, if tomato and onion prices drop below P15, the government should step in to buy the produce or at least compensate them at some point.    While technology is making farming less labor-intensive and more efficient, the real game-changer is proving that there is a rewarding future in agriculture, Mr. Cainglet said. Without this assurance, young people will shun the industry. “That’s the only way to turn the tide,” he said. “There’s no shortcut or magic formula here.” Mr. Cainglet recalled how the COVID-19 pandemic showed that there are only two essential professions — healthcare and agriculture. Despite the hard lessons of the pandemic, he lamented how quickly the world forgot how important the farm sector is.  “The mindset really starts with the farmers themselves,” he said. “They should be the one encouraging their children or siblings to continue farming.” Fifty-year-old Rodel J. Macato, who works on a farm adjacent to Mr. Abat’s, is proud of having toiled under the sun so he could send his kids to college. His eldest daughter now works as the village secretary, while his son is studying to become a marine engineer. “We are the backbone of the country,” he told BusinessWorld in Filipino. “Once we’re gone, what happens to the country’s food supply?” Source: bworldonline.com

The Public Accounts Committee (PAC) of Malaysian parliament will conduct five more closed proceedings during April 2025 on the subject of increasing health insurance premiums. The committee will also consider the private hospital charges and their impact on public health. The committee is likely to present a comprehensive report in this regard to the parliament later in June this year. Surging health insurance premiums in the country have caused public distress to the extent that the PAC had decided to hold for the first time public hearings on the issue. PAC member and Bayan Baru member of parliament Sim Tze Tzin, who had launched a public channel for complaints on healthcare costs, said two public hearings and 12 closed proceedings have already been conducted since February this year, involving various stakeholders such as the ministry of finance, the ministry of health and Bank Negara Malaysia (BNM). Mr Tzin told media persons that PAC will be calling several more stakeholders, including BNM again and the Malaysian Medical Council, with an aim to improve the committee’s recommendations. He said, “We will prepare a detailed and comprehensive report next month (May 2025) before presenting it to Parliament in June 2025.” Also, beginning 1 May this year the price display mandate for private clinics and hospitals will come into force in line with the pricing transparency policy in healthcare services. Health insurance premiums in Malaysia have risen by as much as 30%-50% despite a cap of 10% by BNM. BNM in its directive issued on 20 December 2024 had capped the annual premium increases at 10% for most policyholders in response to public outrage over steep health insurance premium hikes, with some exceeding over 200%. The directive had also mandated the insurers and takaful operators to spread out the health insurance premium hikes over three years. BNM had also directed a one-year premium freeze for policyholders /certificate holders aged 60 and above on minimum medical and health insurance/takaful plans. Source: asiainsurancereview.com

On 2 April 2025, the Liberation Day tariffs announced by US president Donald Trump came into effect, with Singapore prime minster Lawrence Wong saying that "Asia bears the brunt of the US tariff increases" in his ministerial statement. “Within the region, China is the hardest hit – facing a 34% tariff this round. And this is on top of the 20% tariff increase imposed over the last two months, and the 20% from the first Trump administration. So taken together, the average US tariff on Chinese products now exceeds 60%,” Mr Wong said in his statement. “In Southeast Asia, the tariff rates range from 10% to 49%.” Although Singapore maintains a free trade agreement with the US and has a trade deficit with the United States, the Asian nation is still “subjected to the 10% tariff”, he said. The 10% tariff is the universal rate. In terms for Singapore, this translates to weaker global growth in the near term, which means external demand for goods and services will fall, he noted, with the outward-oriented sectors of the economy, such as electronics and semiconductors, suffering the brunt of the impact. Said Mr Wong, “The global uncertainty and dampened sentiments will also impact some services industries, including finance and insurance.” Source: asiainsurancereview.com

By Michael F. Rellosa Over and on top of the fact that the Philippines is considered the most vulnerable country to natural catastrophic perils such as earthquakes, volcanic eruptions, typhoons and floods, our increasingly interconnected world makes the repercussions of natural catastrophes extend beyond borders, affecting communities, economies and ecosystems alike. The recent Myanmar-Thailand earthquake; wildfires in Korea, the United States, Mexico and Canada; floods in Bolivia and Spain; and the reawakening of various volcanoes around the world serve as a stark reminder of our vulnerability to such events. Occurring on March 28, 2025, the Myanmar earthquake not only reminded the region of its seismic risks but also raised critical questions regarding our preparedness and responses to natural disasters. As stakeholders in both the government and the private sector, we must acknowledge the urgency of this situation and act decisively to mitigate future catastrophes. The Myanmar-Thailand earthquake, which registered a magnitude of 7.7, caused widespread panic and damage, displacing thousands and leading to loss of life. Reports emerged of collapsed buildings, disrupted transportation networks and strained health care systems. As nations grappled with the immediate aftermath, it became increasingly evident that this incident was not an isolated event. Rather, it formed part of a broader pattern of natural disasters that have escalated in frequency and intensity due to climate change. In recent years, we have witnessed hurricanes that have devastated parts of the Caribbean, wildfires that have consumed vast areas in Australia and the United States, and floods that have submerged entire cities in various parts of the globe. The time for sticking our heads in the sand is over. The warnings from nature are loud and clear, and we must respond collectively and proactively. Governments and the private sector share a pivotal role in addressing this urgent challenge. We must forge collaborations that bring together resources, expertise and innovative solutions to develop comprehensive disaster preparedness strategies. This entails committing to investing in resilient infrastructure that can withstand the impacts of natural disasters. From retrofitting buildings to comply with earthquake-resistant standards to reinforcing flood defenses, these proactive measures are necessary to protect communities and ensure their safety. Moreover, the private sector possesses the ingenuity and resources to contribute significantly to disaster preparedness. Companies can implement business continuity plans that prioritize employee safety and ensure the resilience of operations in the event of a natural catastrophe. Businesses should also engage in corporate social responsibility initiatives that support local communities in disaster-prone areas. By participating in assessments of risk and resilience, the private sector can cultivate a culture of preparedness that empowers individuals and communities alike. Another critical aspect of preparation lies in education and awareness. We must prioritize research and development to enhance our understanding of the risks we face as a society. Early warning systems, which can provide information on impending catastrophes, are essential in saving lives and protecting livelihoods. Technology can play a pivotal role in this regard. The use of data analytics, satellite imagery and machine learning can help develop forecasting models, which can predict when and where natural disasters are likely to strike. By investing in education and training programs, we can ensure that communities are informed and ready to respond effectively in times of crisis. The recent incidents of natural catastrophes also highlight the importance of governmental policies that promote environmental sustainability and disaster readiness. Policymakers must act urgently to advocate for regulations that prioritize resilient infrastructure and community preparedness. By supporting collaborative initiatives between government agencies, private businesses and local communities, we can lay the foundation for a resilient future. Policies that encourage research into climate adaptation strategies will further enable us to both understand and address the risks posed by natural disasters. The Myanmar-Thailand earthquake, like other recent disasters, serves as a profound reminder of the collective responsibility we share as stakeholders. If we continue to disregard nature's warnings, we risk facing more substantial and devastating consequences. It is our duty to advocate for change, to demand accountability and to collaborate for the common good. In conclusion, the time to act is now. Let us not wait for the next catastrophe to strike before we choose to listen to nature's warnings. By coming together as stakeholders in a shared endeavor, we can protect our communities, economies and environments for generations to come. The call to action is clear: we must address the growing menace of natural disasters with urgency, determination and cooperation. Together, we have the power to shape a secure and resilient future, one that is prepared for the challenges that lie ahead. Source: manilatimes.net