According to the latest Directors and Officers Liability Insurance Survey by Willis in collaboration with Clyde & Co, 75% of the participating directors and officers in Asia view the risk of regulatory breaches as very important or extremely important to their organisations. This top concern in Asia stands in stark contrast to global trends where health and safety risks have become the primary concern for directors and officers (D&O). While the risk of data loss and cyber attacks remains among the top three concerns in Asia, health and safety risks have dropped three places from being the top concern in 2024 to fourth on the list this year. A notable exclusion from the top risks is climate change, which no longer features among the top seven risks in Asia. In general, there is a strong alignment between perceived material risks and board expertise and priorities. However, there is an exception when it comes to cyber security and data privacy, with many boards indicating more time is needed. Data loss and cyber attacks, including extortion, are considered to be very important or extremely important for 72% of those surveyed in Asia. AI lags behind (only 56% of respondents in Asia consider it to be very or extremely important and considered by the fewest number of respondents to be material to the business while also being the lowest ranked issue on which respondents considered the board to have the relevant expertise), but this perception may change in the future as new use cases and regulations develop. Civil litigation and third-party claims were included among the top seven concerns for the first time since 2018 with 65% of Asia-based directors and officers surveyed considering these significant risks to them. Smaller organisations (<$50m in revenue) and those with revenues between $1bn and $5bn mentioned litigation more often. The largest organisations surveyed (>$5bn in revenue) included diversity, equity and inclusion, as well as bribery and corruption as top risks, while excluding the financial distress, bankruptcy and insolvency concerns of smaller organisations. Willis head of financial, professional and executive risks Asia Namit Mahajan said, “It is not surprising that regulatory risk has become a top concern for directors in Asia. The region's diverse regulatory landscape requires companies to navigate a complex array of rules and regulations across multiple jurisdictions, significantly increasing the risk of non-compliance. This trend is also reflected in coverage concerns, with the majority of directors rating cover for multi-jurisdictional exposures as their top priority in Asia. “By taking a proactive approach, companies can optimise their D&O coverage while mitigating financial and reputational risk. Our data helps clients anticipate emerging risks before they become serious exposures.” Clyde & Co partner and head of financial institutions and D&O James Cooper said, “The risk landscape for directors and officers is fast evolving and complex, driven by a multitude of factors from geopolitics to tech advancements and a challenging economic climate. Identifying the most critical risks and understanding where pressure points may appear is crucial in successfully navigating existing and emerging challenges. So too is ensuring that protections such as D&O insurance reflect this changing environment and can adequately cover areas where leaders may feel more exposed such as cyberattacks or data loss.” Source: asiainsurancereview.com

The East Asian Insurance Congress (EAIC) has officially announced the dates and venue for its upcoming 2026 conference, which will take place in Tokyo, Japan. According to the EAIC website, the 2026 edition of the biennial event will be held from Monday, 14 September to Wednesday, 16 September 2026, spanning three days of discussions and networking among industry leaders. The venue has been confirmed as the Grand Nikko Tokyo Daiba, a prominent hotel and conference location situated in the heart of the city. Further details, including the official EAIC 2026 Tokyo conference website, will be released in due course. In the meantime, stakeholders and participants are encouraged to visit the EAIC official website for the latest updates. EAIC organisers have invited members of the insurance community to share the news and help spread awareness about the event. Source: asiainsurancereview.com

The Finance & Risk Frontier Events Team , along with the Philippine Insurers and Reinsurers Association , cordially invites you to attend the Finance & Risk Frontier Summit scheduled for 14-15 May 2025 at the Carlton Hotel Bangkok Sukhumvit, Thailand . PIRA members receive a 10% discount upon registration. To register, kindly fill in the form . For further details, contact Nurul at: +60327750000 ext.632 | nurul@trueventus.com

In a circular, IC chief Reynaldo Regalado called on all insurers and reinsurers to adopt the Application of Philippine Financial Reporting Standard 17 – Insurance Contracts (PFRS 17) in their audited financial statements (AFS) and preparation of IC reportorial requirements. MANILA, Philippines — The insurance sector has been ordered to adopt new accounting standards by 2027, according to the Insurance Commission. In a circular, IC chief Reynaldo Regalado called on all insurers and reinsurers to adopt the Application of Philippine Financial Reporting Standard 17 – Insurance Contracts (PFRS 17) in their audited financial statements (AFS) and preparation of IC reportorial requirements. The new accounting standard should be adopted at the onset of 2027. “We recognize the need by insurers and reinsurers for additional time to prepare for the adoption of PFRS 17 in the presentation of their solvency reports,” Regalado said. “At any rate, insurers and reinsurers are not precluded from adopting PFRS 17 as early as this year,” he said. The additional leeway will allow the IC and other concerned agencies more time to ensure the “effective, proportionate, and well-coordinated adoption of the new accounting framework.” The circular likewise provides that insurers and professional reinsurers shall submit reports outlining the status of their implementation of PFRS 17 until April 30. They are also asked to submit affidavits of undertaking, which serve as formal declarations of companies’ commitments to implement the new accounting standard. Quarterly PFRS 17 implementation status reports will also be submitted, indicating the preparatory activities undertaken, implementation risks, challenges and issues encountered, an assessment of PFRS 17 preparedness as well as the companies’ PFRS 17 accounting policies. Further, the IC is asking insurers and reinsurers to submit quantitative impact assessment reports to ensure that all are conducted and reported in a timely manner. The International Accounting Standards Board (IASB) prescribed on May 2017 the IFRS 17 for insurance contracts, providing for principles for the recognition, measurement, presentation and disclosure of issued insurance contracts in financial statements. In 2018, the Philippines approved the local adoption of IFRS 17 as PFRS 17. The new accounting standard introduces a more uniform and transparent approach to determine insurance contract liabilities using current values and risk adjustments. “The eventual institutionalization of PFRS 17 will ensure prudential stability and sustainable growth. It will also consequently afford the insuring public sustained, if not increased, protection and confidence,” Regalado said. Source: philstar.com

MANILA, Philippines - The local nonlife insurance industry will continue to push for tax cuts in a bid to make protection plans more affordable for Filipinos, especially those in areas frequently hit by natural disasters amid increasing climate change risks. Speaking to reporters on Thursday, officials of the Philippine Insurers and Reinsurers Association (Pira) said they are in talks with the Department of Finance (DOF) to revisit long-standing proposals to reduce certain taxes on protection plans. This has been a campaign that spans many Philippine presidents already, as the need to raise revenues to narrow fiscal deficits leave the proposal languishing in the legislative mill. The umbrella organization said the combined tax rates on nonlife insurance products could go as high as over 27 percent, while the tax rate for life insurance premiums had already been reduced to only 2 percent. Pira general manager Rogelio Concepcion said the industry and the DOF under the Marcos administration have already agreed on certain tax cuts in the proposed bill called “Passive Income and Financial Intermediary Taxation Act” or Pifita. ‘Refined’ But Concepcion said Pira could no longer track the proposed tax reductions since the DOF had amended Pifita, which was “refined” to rake in P300 billion in additional receipts over the next five years from its previous revenue-eroding form. Nonlife insurance policies are currently being slapped with several taxes, such as a 12.5-percent documentary stamp tax, 2-percent fire service tax and up to 0.75-percent local government tax. Nonlife insurance transactions are also subject to a 12-percent value-added tax. Source: business.inquirer.net

Global disasters contribute to rising costs Non-life insurance premiums in the Philippines may increase as global reinsurance costs rise, driven by climate change and natural disasters , according to industry leaders. In a recent press briefing covered by Business Mirror, the Philippine Insurers and Reinsurers Association (PIRA) warned that catastrophic events, such as the California wildfires, are raising reinsurance costs.  Eden R. Tesoro, PIRA’s former chairperson and the chief operating officer of Malayan Insurance, explained that insurers relying on affected reinsurers are likely to face increased pricing. “If your reinsurer is one of those affected by those fires, then you can expect that they will adjust their pricing,” Tesoro said. Reinsurance allows insurance companies to manage large-scale risks by transferring part of their exposure to other insurers. When reinsurance costs rise, those increases are typically passed on to insurers and eventually to policyholders. According to Tesoro, the rising cost of reinsurance is putting pressure on insurers, with expenses ranging from 50% of total costs to nearly double in some cases.  She told Business Mirror that this financial strain has already led to a 10% to 15% increase in non-life insurance premiums in 2023 and 2024. Despite these rising expenses, insurers cannot unilaterally raise premiums. PIRA executive director Michael F. Rellosa emphasized that any premium adjustments require regulatory approval, limiting insurers' ability to respond quickly to increased costs. Jose Augurio N. De Vera Jr., head of the non-life reinsurance division at the National Reinsurance Corporation (NatRe) , described the current reinsurance market as a "hard market"—a term used when coverage becomes both more expensive and harder to secure. De Vera said the California wildfires are just one example of global disasters contributing to rising costs. Each significant event adds financial pressure on reinsurers, which affects the pricing of insurance coverage worldwide. The Philippines’ vulnerability to natural disasters intensifies the issue. According to the World Risk Index, which Business Mirror also cited, the country ranks first in the world for disaster risk exposure. Rellosa warned that the Philippines could face record-high temperatures and increased rainfall, raising concerns about future losses.  "It looks like there’s a perfect storm brewing, and we want to be ready for that," he said. Global political and economic conditions add another layer of complexity. Tesoro highlighted concerns over trade tensions, particularly those involving the United States. Rising tariffs may increase import costs and drive up local production expenses, which could further affect insurance pricing. As reinsurance costs continue to climb and global risks evolve, how will these factors affect the affordability and availability of non-life insurance for consumers? Share your thoughts below. Source: insurancebusinessmag.com

The Finance & Risk Frontier Events Team , along with the Philippine Insurers and Reinsurers Association , cordially invites you to attend the Finance & Risk Frontier Summit scheduled for 14-15 May 2025 at the Carlton Hotel Bangkok Sukhumvit, Thailand . PIRA members receive a 10% discount upon registration. To register, kindly fill in the form . For further details, contact Nurul at: +60327750000 ext.632 | nurul@trueventus.com

The Finance & Risk Frontier Events Team , along with the Philippine Insurers and Reinsurers Association , cordially invites you to attend the Finance & Risk Frontier Summit scheduled for 14-15 May 2025 at the Carlton Hotel Bangkok Sukhumvit, Thailand . PIRA members receive a 10% discount upon registration. To register, kindly fill in the form . For further details, contact Nurul at: +60327750000 ext.632 | nurul@trueventus.com

The Finance & Risk Frontier Events Team , along with the Philippine Insurers and Reinsurers Association , cordially invites you to attend the Finance & Risk Frontier Summit scheduled for 14-15 May 2025 at the Carlton Hotel Bangkok Sukhumvit, Thailand . PIRA members receive a 10% discount upon registration. To register, kindly fill in the form . For further details, contact Nurul at: +60327750000 ext.632 | nurul@trueventus.com

The California fires may be miles away but the heat is felt by the local nonlife insurance sector, which is now projecting premium costs to increase in the near future to offset losses from more destructive natural catastrophes due to climate change. At a press conference on Wednesday, officials of Philippine Insurers and Reinsurers Association (PIRA) Inc. said the raging wildfires in Los Angeles last January contributed to the global “accumulation” of climate change risks that have made reinsurance costs more expensive for insurance providers worldwide. Also known as the insurance for insurers, reinsurance is a protection that insurance companies can buy to insulate themselves from too much losses. As it is, worsening natural disasters have been stoking an increase in reinsurance prices in recent years as claims go up. That said, PIRA—the umbrella organization of all nonlife insurance firms in the country—said insurers would soon have to offset the higher reinsurance costs through premium hikes. But the group said any increases in insurance prices would still have to be approved by regulators. “Reinsurance, you can consider it as a key ingredient in your product. So, it’s not sustainable if insurers will continue to price at the same level even though your cost of reinsurance is already very high,” Eden Tesoro, former PIRA chair, told reporters. “Even if you say the insurance cost is high, I think that has to be put in a proper perspective—because companies are actually swallowing a lot of that cost,” Tesoro added. Latest data from the Insurance Commission showed the total net income of the nonlife insurance sector had dipped by 2.63 percent in 2024 to P8.9 billion, as the 10.15-percent increase in losses outpaced the 6.58-percent growth in premiums earned. Jose De Vera Jr., head of nonlife reinsurance at the National Reinsurance Corporation of the Philippines, the nation’s sole reinsurer, said the Philippines had experienced a “hard market” in the past two years, resulting in “significant increases” in reinsurance costs. Still insurable The reinsurance price hikes, De Vera said, were most pronounced last year. It may be recalled that the Philippines, which is located in the Pacific Ring of Fire, was visited by powerful storms in late 2024, causing massive flooding. But despite the losses, Michael Rellosa, executive director at PIRA, said the local nonlife sector remained liquid and ready to pay the benefits of clients in need, citing the 3.35-percent increase in the industry’s net worth last year. The good news is despite the Philippines’ high exposure to climate change risks, Tesoro said local nonlife insurance providers are not pulling out of any vulnerable areas, like the Bicol Region and the flood-prone Marikina City. But people in these areas would find themselves paying more for protection plans than those in other areas. “At most, there is limited [insurance] coverage,” Tesoro said. “Of course, we want to be there for everyone. But we also need to be sustainable. Because in the long run, we will be doing our clients a disservice if we are not able to manage our business well, which will result in us pulling out because we cannot sustain it,” she added. Source: plus.inquirer.net