Specialist insurer Beazley has reported that middle market organisations have been especially hard hit by online social engineering attacks during the pandemic. In the second quarter of 2020, cybercriminals targeted businesses that remained open during lockdown where many employees were working remotely, making them more susceptible to cyberattacks. Of all the social engineering attacks reported to Beazley Breach Response (BBR) Services globally in Q2, 60% of organisations targeted were in the middle market (defined as over $35m in annual revenue), up from 46% in Q1. Social engineering involving a system infiltration remained at a steady rate in the first half of the year. Fortunately, in more than 80% of reported incidents, the attack was stopped before a direct financial loss occurs. “Middle-market organisations have been resilient in maintaining their day-to-day operations during the pandemic and, in turn, their employees are more available to be targeted. Additionally, cybercriminals are executing more sophisticated attacks and middle-market organisations provide richer targets,” said Beazley global claims team lead for cyber & tech Kimberly Horn. Fraudulent instruction attacks also primarily hit middle market organisations, which were the target in 55% of incidents, compared to 24% in Q1. In looking at individual sectors, healthcare, financial institutions, manufacturing, real estate, and education were the most targeted industries in Q2. By Amir Sadiq Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/73708/Type/eDaily/Middle-market-cyberattacks-rise-during-the-pandemic

South Korea's largest general insurer Samsung Fire & Marine Insurance (SFM) consistently outperforms its domestic peers in underwriting profitability with a superior level of stability, notes AM Best. The insurer’s combined ratio was the lowest in South Korea’s insurance industry for 2019, despite an industry-wide deterioration in underwriting performance during the year. More recently in 2020, SFM reported better underwriting performance, mainly driven by improved profitability in the auto insurance line following a series of rate hikes since 2019, and a reduced car accident rate during the COVID-19 pandemic. Combined with the impact of increased rates in the auto insurance line, AM Best expects this positive underwriting trend to continue into the second half of 2020 amid the current pandemic. AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa+” of SFM. AM Best also has revised the outlook to stable from negative. The ratings reflect SFM’s balance sheet strength, which AM Best categorises as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM). SFM’s risk adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level, underpinned by its substantial capital and surplus of $12bn at year-end 2019. Its robust balance sheet strength is also supported by the company’s low asset and underwriting leverage compared with its domestic peers, as well as highest regulatory risk-based capital ratio within South Korea’s non-life insurance segment. Investment SFM’s investment strategy is deemed highly conservative; the majority of its investments are allocated in fixed-income assets while the company maintains a relatively small proportion of overseas and alternative investments compared with its peers, which offsets concentration risk from its affiliated stock holdings. Notwithstanding the increasing pressure on investment yield amid an ultra-low interest rate environment, AM Best expects investment income to maintain a solid base for the company’s overall bottom line given its substantial volume of investment assets. Business profile With a strong brand and a large captive agent distribution network, SFM has maintained its leadership position in South Korea’s non-life insurance segment, accounting for approximately 24% of total industry premiums in 2019. SFM also has a dominant presence in the online auto insurance segment. As the pioneer in South Korea’s online auto insurance business, SFM has a strong competitive advantage, which includes its high quality customer base, a large accumulated database and the scale to maximise cost efficiency. SFM has a limited presence in overseas markets, but its global expansion strategy marked a notable advancement in 2019 as the company acquired a significant minority stake in Canopius Group, a participant in the Lloyd’s market. SFM is actively seeking global business opportunities in collaboration with Canopius. With a group risk management culture entrenched in the organisation and a robust governance structure, SFM’s risk management capabilities are superior to its domestic and international peers with similar business profiles. By Asia Insurance Review Team Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/73715/Type/eDaily/South-Korea-Samsung-Fire-Marine-shows-highest-profitability

The landmark verdict by the London High Court on Tuesday, in the business interruption (BI) test case brought by the Financial Conduct Authority (FCA), could serve as a guide in assessing similar BI-related claims arising from the pandemic in Asian countries that follow the common law system. Speaking to Asia Insurance Review, Willis Towers Watson head of claims in Asia Neil Thomas said, "The judgement is obviously applicable to UK insurers and policyholders but it is likely that other common law jurisdictions in some Asian countries will be following this case closely and may choose to follow the UK court decision. "For policyholders in the UK or elsewhere, even here in Asia ,who have had their COVID-19 BI claims rejected or who have deferred submitting a claim, it would now be appropriate to review their circumstances in light of the UK judgement and open a discussion with their insurers if a claim seems likely to be covered.” While describing the verdict as a ‘significant win for policyholders’, he warned that the 160-page judgement had many nuanced findings and many not please every policyholder. "There is the possibility that the judgement, or aspects of it, will be appealed so the matter is not definitively settled at this point although insurers are likely to take careful notice of the judgement and will review their portfolios in light of the findings." The Chartered Insurance Institute (CII), meanwhile, issued a statement on the eve of the verdict urging the insurance industry to focus on product governance, including having greater clarity on product wordings, in order to avoid a similar episode in the future. "Where the same words and phrases are used in different contracts, there should be a consensus among professionals about what those terms mean, so that consumers can be reassured that two policies that look the same on paper cover the same risks," said the CII. It also called for improvement in the advisory process to help clients better understand both the insurable and non-insurable risks they face; as well as for the industry to establish an approach to systemic risks, such as pandemics, that would clearly set out the scope of government intervention for risks to be co-insured between the public and private sector. By Ridwan Bin Abbas, Asia Insurance Review Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/73680/type/eDaily

Leading insurers from across the globe—representing over 10% of world premium volume and USD 6 trillion in assets—and the UN Environment Programme (UNEP) have released a progress update on a pioneering initiative to enhance the insurance industry’s assessment of climate change futures. This progress update serves as a prelude for the final report to be published by the end of the year. Over the past eight months, 22 insurers have been working together under the auspices of UNEP’s Principles for Sustainable Insurance Initiative (PSI)—the largest collaboration between the UN and the insurance industry—to explore and pilot methodologies that insurers can use towards implementing the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD). The overall aim of the pilot project is to contribute to the development of consistent and transparent analytical approaches that can be used to identify, assess and disclose climate change-related risks and opportunities in insurance portfolios in a forward-looking, scenario-based manner. Climate change risk assessment based on forward-looking information and climate change scenarios is a central component of the TCFD recommendations, and is arguably the most challenging to implement. The pilot project assesses climate-related physical, transition and litigation risks in the context of insurance portfolios. In the financial sector, this insurance project represents a pioneering initiative that assesses these climate-related risks in one major study. The 22 insurers participating in the project are listed below together with their respective countries of domicile: Allianz (Germany), Aviva (UK), AXA (France), Desjardins (Canada), Generali (Italy), IAG (Australia), ICEA LION Group (Kenya), Intact (Canada), MAPFRE (Spain), MS&AD (Japan), Länsförsäkringar (Sweden), Lloyds Banking Group (UK), Sompo Japan (Japan), Munich Re (Germany), NN (The Netherlands), QBE (Australia), Storebrand (Norway), Swiss Re (Switzlerand), TD Insurance (Canada), The Co-operators (Canada), Tokio Marine (Japan), and Zurich (Switzerland). The key findings reflected in the progress update, Using hindsight and foresight: Enhancing the insurance industry’s assessment of climate change futures, will be presented in a PSI global webinar next week. On 17 September, two webinars will be held to cater to different time zones: 1st webinar: 9:00 to 10:30 am Central European Summer Time Register: https://bit.ly/PSI-TCFD-webinar-1 2nd webinar: 3:00 to 4:30 pm Central European Summer Time Register: https://bit.ly/PSI-TCFD-webinar-2 For more information, please contact the following at UNEP’s Finance Initiative: Butch Bacani, PSI Programme Leader: butch.bacani@un.org Manuel Lonfat, PSI-TCFD Project Manager: manuel.lonfat@un.org Kai Remco Fischer, Climate Change Lead: kai.fischer@un.org

In a bid to fast track the standardization of trainings and qualifications for insurance professionals in all ASEAN member countries, the ASEAN Insurance Council has partnered with the ASEAN Qualifications Reference Framework (AQRF) Committee for its ASEAN Insurance diplomas. Attending the 8th AQRF Committee meeting held online last 24 August 2020, AIC Education Committee Chairman Michael Rellosa and AIC Executive Director Bern Dywanto officially conveyed the AIC’s intention to benchmark the ASEAN Insurance Diplomas with the AQRF. The AQRF is a regional common reference framework that functions as a device to enable comparisons of qualifications across ASEAN countries. It addresses the gaps in the education and training sectors and the wider objective of promoting lifelong learning. Mr. Rellosa noted that as the ASEAN strives to build a single economic community with a free flow of goods, services and investments, the need for a standardized training and qualifications assessment for human resources become more paramount. AQRF Committee Chairperson Megawati Santoso said the ASEAN Insurance Diplomas is the first sectoral qualifications program formally referenced to the AQRF. “The ASEAN Insurance Diplomas could pave the way for other sector to improve and harmonize their education and training qualifications through benchmarking their regional qualifications to the AQRF,” she said. “We sincerely hope that the ASEAN Insurance Diplomas will be successfully implemented and contribute to greater mobility of ASEAN professionals in the region.” Meanwhile, Professor Ir. Nizam, the Director General of Higher Education in Indonesia, spoke at the AQRF Committee Meeting and highlighted the need to accelerate ASEAN’s collective efforts in promoting education especially in the midst of the ongoing Coronavirus (Covid-19) pandemic. “With most education and training institutions, from early childhood up to higher education and beyond, being forced to move their learning platforms online, the need for massive quality assurance in online learning has never been more important. Not only is it important for us in recognizing academic and professional achievements of current and future students and professionals, but also assuring the quality of education and training received by our younger generations to pursue their future livelihood,” he said.

They may not be able to travel, but it doesn’t mean they will not be able to learn. This year’s edition of an annual training for young insurance managers in Southeast Asia will push through online. The ASEAN School for Young Insurance Managers (AYIM) one of the initiatives of the ASEAN Insurance Education Committee of the ASEAN Insurance Council, will have its 11th session every Tuesday and Friday from 28 September to 15 October, 2020. It is designed to transform promising, high-potential young ASEAN Insurance Managers into multi-faceted leaders possessing the required management skills and broad market visions to assume the cross-functional responsibilities expected of company and industry leaders. Since the School’s launch in Bali, Indonesia in November 2006, it has trained a total of 636 insurance managers from 9 ASEAN countries. The program comprises five Leadership tracks, namely, Strategic Management, Financial Management, Human Capital Management (formerly titled People Management), Corporate Governance & ERM (formerly titled Corporate Risk Management), and an enhanced track on Digital Marketing In Insurance. This is a highly intensive 5-day ASEAN program comprised of case-study learning, lectures, and peer sharing. Participants will benefit immensely from the support and guidance of facilitators who are practitioners with extensive industry experience. Those who want to take part of this course need to meet the following criteria: • Employed by Life Insurers or Non-Life Insurers, Composite Insurers, Reinsurers or Regulators’ office in any of the ASEAN Countries; and • Must submit a Letter of Recommendation from Company; • Must be between 31 and 40 years of age; and • Proficient in English language. For more information, you may visit the Singapore College of Insurance website and download the AYIM brochure (https://www.scicollege.org.sg/docs/AYIM_brochure.pdf) You may also contact directly the Programme Manager - Singapore College of Insurance email at AYIM@scidomain.org.sg.

5G technology will play an increasingly role in the insurance industry, used at the beginning to the end of insurance-related processes and transforming the sector, says the secretary general of the Office of Insurance Commission (OIC) , Dr Suthiphon Thaveechaiyagarn. 5G technology will play a role in the process of developing insurance products and issuing insurance policies to customers. It will also help promote the use of sensors and various IoT devices that transmit data at all times in greater quantities at lower costs, reported Business Nation quoting Dr Suthiphon. By quickly transmitting information about the risks and requirements surrounding a customer and developing protection models, insurance companies can offer products that are appropriate to the risks faced by and needs of customers. For example, customers involved in traffic collisions may not need to wait for a surveyor to get to the accident site to take pictures because customers themselves will take pictures or record videos showing the condition of the vehicle involved in a crash. In addition, more lifestyle data can be collected. The 5G system will enable a large number of smart devices and sensors to be connected together. As a result, the number and application of IoT devices have grown exponentially, such as the use of various wearable devices to help collect data on an insured person's lifestyle and habits. By Asia Insurance Review Team Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/73491/Type/eDaily/Thailand-5G-technology-to-propel-insurance-industry-transformation

Health insurer Daman has collaborated with Microsoft to launch a bilingual health bot that will assist patients to conduct self-assessment on COVID-19 symptoms and guide them to the appropriate level of care. The AI-powered tool is designed to provide patient assessment for the disease, triage and symptom checking, general medical information and medical recommendations, said Daman in a press release. The health bot will ask patients a defined set of questions and follow specific protocols. Patients are then advised to connect with Abu Dhabi Department of Health, UAE Ministry of Health & Prevention and the Dubai Health Authority for further assistance. Commenting on the collaboration, Daman CEO Hamad Al Mehyas said, “We have a very important social responsibility to play during the pandemic crisis and protect the health and safety of people. The Daman health bot speaks to that effort by addressing queries and reducing person-to-person engagement. “Partners such as Microsoft are empowering us with the right technology to better engage the public and provide the right level of guidance. The Daman health bot will reduce patient visits to hospitals, lessen workload on call centres, enhance patient experience and encourage them to proactively manage their health condition.” The health bot is available on the company’s website and mobile application with the aim of reaching its network of over 2.5m members. By Zuhara Yusoff, Middle East Insurance Review Link to original post: https://www.meinsurancereview.com/News/View-NewsLetter-Article/id/73488/Type/MiddleEast

Europe's four biggest reinsurers racked up an additional EUR3.46bn ($4.1bn) of coronavirus claims and reserves between them in the second quarter, taking the total for the first half of the year to EUR4.9bn, according to S&P Global Market Intelligence. More claims are likely to come in amid the continued uncertainty about business interruption, credit and surety and life in particular. The bulk of the EUR1.45bn of coronavirus claims and reserves that Munich Re, Swiss Re, Hannover Re reported in the first quarter came from event cancellation. SCOR SE, which has little exposure to event cancellation, did not book any coronavirus claims in the first quarter. In the second quarter, however, the reinsurers, including SCOR, started to add reserves for other business lines. Event cancellation continued to be the biggest source of expected claims for Munich Re, but the largest single portion of Swiss Re's $2.54bn first-half claims charge was business interruption, which totalled $973m across its property and casualty reinsurance and corporate solutions primary insurance units. Hannover Re said 40% of its EUR600m nonlife reinsurance coronavirus claims hit was for business interruption, with 25% for credit and surety, 20% for event cancellation and 15% for other classes. SCOR’s EUR248m nonlife reinsurance bill came mainly from credit, surety and political risk and business interruption. Having booked no life reinsurance claims in the first quarter, the four companies combined registered life claims and reserves of EUR850m in the second quarter. The majority of the coronavirus claims booked to date comprises reserves for incurred but not reported (IBNR) claims, rather than paid claims or case reserves. Swiss Re's earnings presentation showed that 72% of its $2.54bn total was IBNR. Analysts have said the trajectory of the virus will be a critical factor. If there was another lockdown on the scale of those seen between March and June, then there could possibly be additional claims from the lines of business that have already been hit. Business interruption remains a big source of uncertainty because of the various court battles concerning coverage. Swiss Re CFO John Dacey has said that the company's first-half business interruption provision could absorb unfavourable court decisions "up to a point", it may have to re-evaluate reserves if judgments are "radically adverse to the industry." Hannover Re's non-life reinsurance head, Sven Althoff, told analysts that if all the cases go against the insurance industry, the EUR240m it has set aside for business interruption "would not be sufficient." He also noted that the provision assumes no retroactive changes to business interruption coverage in the US. A further issue is that there is typically a delay before reinsurers are notified about deaths and their causes, which could mean reinsurers having more coronavirus-related mortality claims than they think. By Anoop Khanna, Asia Insurance Review Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/73357/type/eDaily/Reinsurers-COVID-19-bill-triples-as-claims-start-to-emerge