The Southeast Asia Disaster Risk Insurance Facility (SEADRIF) and the Food and Agriculture Organisation (FAO) have partnered with six ASEAN countries to explore pathways for establishing a Southeast Asia Agricultural Risk Finance Facility (ARFF). On the sidelines of the 10th anniversary event of the ASEAN Climate Resilience Network (CRN) in January 2025, representatives from six ASEAN countries and regional stakeholders agreed to explore the development of the Southeast Asia ARFF as a potential sectoral mechanism under SEADRIF. The risk finance facility will have funding support from the Green Climate Fund (GCF). According to a media release by SEADRIF, climate shocks are increasingly threatening Southeast Asia's agrifood systems, where more than one-third of the workforce depends on farming for their livelihood and the sector contributes over 10% of regional GDP.  Despite the critical role of agriculture in ASEAN's economy and food security only 3% of global climate finance reaches this sector, which highlights an urgent need for transformation in managing climate risks. Southeast Asian countries have piloted innovative and practical agricultural solutions to mitigate climate impacts. However, common challenges impede the scaling-up of climate actions, particularly in expanding protection against climate shocks to effectively support underserved populations. Achieving this requires access to data, models, and specialised expertise to reduce transaction costs and streamline access to domestic and international insurance and reinsurance providers. Additionally, the affordability of premiums and the right cost-sharing between the insured and public support remain key concerns. Regional collaboration in scaling up agriculture risk finance can provide concrete benefits to participating countries. These would include reduced premium costs through a regional pool from regional diversification, economies of scale, and better negotiating power. Also, reduced transaction time and costs from a simplified go-to-market process for governments with improved products and conditions through centralised technical expertise in placement and market negotiations will be another noteworthy feature of the facility. With increased protection for difficult-to-insure exposures or perils, more innovative products through joint access to testing and implementing new technologies and products will be enabled. With increased budget and price stability from a member-owned facility will be able to help smooth insurance prices over market cycles. To support such areas, a regional facility will also provide access to world-leading knowledge, data, tools, and technical services and facilitate regional experience sharing. According to the media release in the coming months, SEADRIF and FAO will conduct a pre-feasibility assessment and work with countries to align on vision and objectives. The study will assess gaps, needs, and appropriate implementation arrangements and funding flows to unlock and inform climate finance investments into this critical area of strengthening the resilience of agriculture in the region. Source: asiainsurancereview.com

3rd NRA National Working Group Meeting - Group 5 Insurance Sector ML Vulnerability, held on March 4, 2025, at Bangko Sentral ng Pilipinas, Manila. Attendees included DPC and Compliance Committee Chair Atty. Ma. Patricia Foria and Atty. Theodore Joseph Campañano.

The Financial Services Authority (OJK), Indonesian insurance regulator, with effect from 24 March 2025 will implement a new regulatory approach in the insurance sector with the introduction of OJK Regulation No 37 of 2024 (Regulation 37/2024). The new regulatory system that will enhance flexibility and effectiveness in addressing regulatory violations. It will focus more on managing significant risks rather than rigidly adhering to predefined rules. The new regulation will replace the previous compliance-based system under OJK Regulation No 17/2017 (Regulation 17/2017) with a more risk-based approach to administrative sanctions. According to media sources under the new regulation, OJK aims to improve the effectiveness of administrative sanctions by shifting focus from rigid rule adherence to a more flexible risk management approach. By addressing the most significant risks, the new system is expected to enhance regulatory oversight and compliance within the insurance industry. One of the major changes introduced by Regulation 37/2024 is the broader scope of OJK’s authority. Previously, OJK could only impose sanctions for violations of insurance-specific regulations. However, the new regulation allows OJK to penalise companies and individuals for breaches of any financial sector regulations, ensuring more comprehensive supervision and enforcement. While these measures aim to enhance accountability, some aspects still remain unclear, particularly the enforcement of position bans on companies and the precise definition of "other parties" subject to the regulation. In a commentary on the new regulation the international law firm Baker McKenzie writes that Regulation 37/2024 introduces two new types of administrative sanctions 1) Financial soundness downgrade - applicable to insurers and reinsurers and 2) Prohibition on holding positions as a controller, controlling shareholder, director, commissioner, sharia supervisory board member, or other executive roles – applicable to insurers, reinsurers, brokers, agents, actuarial consultants, public accountants, appraisers, and other parties. The law firm says, “While the prohibition on holding positions can be imposed on individuals, it remains unclear how OJK will enforce this prohibition on insurance and insurance-related companies, aside from restricting them from holding positions as controller and controlling shareholder.” The new regulation 37/2024 also introduces a clear distinction between administrative and substantive violations, with different penalties for each category. - Administrative violations refer to infractions that do not significantly impact financial health, such as minor reporting errors. Sanctions may include written warnings and administrative fines up to IDR 1bn (approximately $66,000). - Substantive violations involve serious breaches that threaten financial stability, such as fraudulent activities or major compliance failures. These may result in business restrictions, license revocation, larger fines, or bans from holding key positions. Source: asiainsurancereview.com

What are heat exhaustion and heatstroke? Heat exhaustion happens when your body gets too hot. If you don’t treat heat exhaustion, it can lead to heatstroke. This occurs when your internal temperature reaches at least 104°F. or 40 C. Heatstroke is much more serious than heat exhaustion. It can cause shock, organ failure, or brain damage. In extreme cases, heatstroke can kill you. Symptoms of heat exhaustion and heatstroke Symptoms of heat exhaustion are: Muscle cramps Heavy sweating Pale or cold skin Weakness and/or confusion Dizziness Headache Nausea or vomiting Fast heartbeat Dark-colored urine, which indicates dehydration In addition to these symptoms, warning signs of heatstroke also include: Fever of 104°F  or 40 C. or higher Flushed or red skin Lack of sweating Trouble breathing Fainting Seizures What causes heat exhaustion and heatstroke? Heat-related illnesses occur when your body can’t keep itself cool. As the temperature rises, your body produces sweat to stay cool. On hot, humid days, the increased moisture in the air slows down this process. When your body can’t cool, your temperature rises and you can become ill. Hot weather and exercise are the main causes of heat exhaustion and heatstroke. In hot settings, you need to be mindful of the temperature outside. The heat index is not the same as the temperature. It measures the air temperature plus the effects of humidity. A heat index of 90°F or higher calls for extreme caution. Prolonged exposure to high temperatures increases your risk of heat-related illnesses. How are heat exhaustion and heatstroke diagnosed? If a person is displaying known heat illness symptoms, take their temperature. A reading of 104°F or more means they probably have heatstroke. You should call 911 and get medical care right away. Can heat exhaustion and heatstroke be prevented or avoided? There are many things you can do to prevent heat-related illnesses. Babies, children, and elderly people are more sensitive to heat and require extra attention. You also are at greater risk if you are ill or have obesity or heart disease. People who work outside or in a hot setting also are at risk of heat exhaustion and heatstroke. Don’t go outside when the temperature and heat index are high. If possible, stay indoors in air-conditioned areas. If you must go outside, take the following precautions. Wear lightweight, light-colored, loose-fitting clothing. Protect yourself from the sun by wearing a hat or using an umbrella. Use sunscreen with a sun protection factor (SPF) of 15 or higher. Drink plenty of water throughout the day. Dehydration and lack of salt contribute to heat-related illnesses. Some sports drinks can help replenish the salt in your body lost through sweating. Drink water or other fluids every 15 to 20 minutes, even if you don’t feel thirsty. If your urine is clear, you are probably drinking enough fluids. Dark-colored urine is a sign that you’re dehydrated. Avoid or limit drinks that contain caffeine (such as tea, coffee, and soda) or alcohol. Schedule outdoor activities for cooler times of the day — before 10 a.m. and after 6 p.m. Take frequent breaks from the heat and outdoor activities. Do not stay or leave a child in your car when it is hot outside. Even if you open the windows, the intense heat can be extremely dangerous. Certain medicines can put you in danger of heatstroke. They affect the way your body reacts to heat. Talk to your doctor if you take any of these or have an ongoing health problem. They can help you manage the heat with your condition. These medicines include: Antibiotics Allergy medicines (antihistamines) Some medicines used to manage blood pressure, cholesterol, and heart disease (beta-blockers and vasoconstrictors) Some medicines that treat mental health problems (antidepressants and antipsychotics) Seizure medicines (anticonvulsants) Water pills (diuretics) Laxatives Some diet pills Prescription acne medicines Illegal drugs, such as cocaine (amphetamines) Heat exhaustion and heatstroke treatment If you or someone else has heat exhaustion, treat symptoms in the following ways. Get out of the heat quickly and into a cool place, or at least shade. Lie down and elevate your legs to get blood flowing to your heart. Take off any tight or extra clothing. Apply cool towels to your skin or take a cool bath. This will help regulate and lower your internal body temperature. Drink fluids, such as water or a sports drink. Do not guzzle them, but take sips. Do not drink fluids with caffeine or alcohol. Call 911 if: Symptoms don’t improve or they still have a fever of 102°F after 30 minutes of initial treatment. The person goes into shock, faints, or has seizures. The person is not breathing. You also should begin CPR right away to try and revive them. Living with heat exhaustion and heat stroke After you’ve had heat exhaustion or heatstroke, you will be sensitive to heat. This can last for about a week. It’s important to rest and let your body recover. Avoid hot weather and exercise. Ask your doctor when it’s safe to return to your normal activities. Questions to ask your doctor What are the warning signs of heat exhaustion and how can I prevent it from worsening? What are heat cramps and who can get them? What is heat rash and is it dangerous? What should I do if I’m taking medicine that makes me sensitive to heat? How much water should I drink when it’s hot outside? What should I do if I work in a hot environment? Resources: National Institutes of Health, MedlinePlus: Heat Emergencies

February 18, 2025 | New World Hotel, Makati Organized by the General Insurance Association of Japan (GIAJ), the General Insurance Institute of Japan (GIIJ), and the Philippine Insurers & Reinsurers Association (PIRA), this seminar aims to provide participants with information on the latest issues and trends through the exchange of ideas and expertise and sharing of best practices, thus contributing to the sound development of the non-life insurance industry in the Philippines.

By Derco Rosal Feb 19, 2025 Electric vehicle (EV) owners planning to avail of auto insurance can expect more expensive premiums, as guide rates will be published by midyear or earlier, according to a senior official of the Philippine Insurers and Reinsurers Association (PIRA). The draft of the guide rates for EV insurance has already been submitted to the Insurance Commission (IC), and its publication is expected “before the middle of the year,” PIRA executive director and trustee Michael Rellosa told reporters on the sidelines of the overseas seminar of the Insurance School of Japan (ISJ) on Tuesday, Feb. 18. Rellosa said the non-life insurance industry group comes up with the rates and submits them to the IC for assessment and approval. The IC is the government regulatory authority overseeing the insurance, pre-need, and health maintenance organization (HMO) sectors. As of now, Rellosa noted that the industry is still working on the updates for EVs. “We have asked for assistance from countries that have already covered electric vehicles like Malaysia, Thailand. But of course, we can’t rely on their statistics because their data is different from ours. So we’re trying to marry the two and come up with guide rates going forward,” he said. In general, premium rates are “significantly higher for electric vehicles,” according to Alexander Reyes, a member of PIRA's motor committee.  “Companies are still trying to feel their way. Some companies actually opted not to insure electric vehicles first because they heard that the losses are bad in other markets. But some companies are trying, maybe trying with a few accounts,” Reyes further said. Additionally, Rellosa noted several problems that PIRA faces with EVs, foremost of which is the cost of the vehicle itself. “If an electric vehicle has an accident and the battery runs out, that’s already one-third of the value of the vehicle. One-third to one-half,” he said, stressing that the association has identified “a lot of issues that are unique to electric vehicles." Beyond that, he also noted that the quiet operation of EVs raises safety concerns, while batteries placed underneath are vulnerable to road damage and flooding, among other risks. With EVs being high-risk, Reyes said rates for electric cars are significantly higher, possibly double than those of regular cars and other vehicles. When compared to local market rates, this double-the-regular-vehicle rate was described by Reyes as “too low.” Relative to regular vehicles, there are fewer insurance companies covering EVs, Reyes noted. As such, insurers charge higher rates to policyholders or clients due to the low competition. Source: mb.com.ph Your article entitled " EV Insurance Premiums in Philippines could double compared to traditional cars" published at the Manila Bulletin Feb. 19, 2025 Hi Derco, We write in reference to the captioned article, which you pened.   We just wish to bring to your attention a simple correction that needs to be made to ensure the accuracy of what was reported.   As stated in paragraph two of your article we wish to clarify that it was not the draft of the guide rates for EV insurance that was already submitted to the Insurance Commission. The Draft is still a work in progress by PIRA's Motor Technical Committee.  What was submitted to the IC is the draft of the proposed insurance premium rates for the new Motorcycle Taxi Passenger's Personal Accident coverage. These are two distinct coverages. We would appreciate a correction at the earliest and most convenient opportunity. Should you have any questions, please do not hesitate to contact me. Thank you and warm regards, Mitch Michael F. Rellosa Executive Director Electric cars may demand higher insurance costs vs traditional vehicles — PIRA Aaron Michael C. Sy February 19, 2025 Insuring electric vehicles (EVs) could cost twice as much as the premiums for traditional vehicles that use gas or diesel, the Philippine Insurance and Reinsurance Association (PIRA) said. “Maybe double. Maybe that would be the top end. But definitely higher [than regular vehicles]. It depends on the company. It’s hard to say because I don’t know what their commission rates are, but it’s significantly more expensive,” PIRA Motor Committee Member Alexander Reyes told reporters on Tuesday. PIRA Executive Director Michael L. Rellosa said they hope to have guide premium rates for EVs by midyear, adding that the group has collated data from other countries to help determine these benchmarks. “We have asked assistance from countries that have already covered electric vehicles like Malaysia and Thailand. But of course, we can’t rely on their statistics because their data is different from ours. So, we’re trying to marry the two and come up with guide rates going forward,” he said. EVs will likely need higher premiums as these are considered riskier, Mr. Rellosa said. “If an electronic vehicle has an accident and the battery runs out, that’s already one-third to one-half of the value of the vehicle. And then, of course, electric vehicles are heavier and they’re quieter… It’s too quiet so it causes accidents. Another thing, being electric, the batteries are actually underneath the car — and we know the condition of roads,” he said. “If water gets into the batteries and short-circuits, it’s a problem. Another problem, although the automotive industry is already looking into it, is lithium batteries, because some of the earlier versions of EVs actually burst into flames on their own. So, it becomes a risk, not only for the motor vehicle, but even for the houses or the buildings that they’re parked in. We really have a lot of issues that are unique to electric vehicles.” Mr. Reyes added that there is a need to account for climate risks when insuring EVs and coming up with policy terms and conditions, as weather phenomena could result in big losses for insurers. “What I’ve heard is in other markets, if you go through a flood, for example, it’s not covered… Those are the things that insurance companies may resort to. If your concern is that the battery might get damaged or the electronics might get flooded, you will set conditions where it’s not allowed. In a normal policy, you don’t put that. If the water level is low, you will be fined. If it’s an EV, the terms will be stricter,” he said. Companies may also have to change the way they insure as EVs have a different value depreciation rate compared to regular vehicles, Mr. Reyes said. “Now, for us, the basis of the premium you pay is a rate applied to the fair market value of the vehicle. If the fair market value of the vehicle goes down faster, the insurer might need to change its basis for the rate. It might need to develop rates independent of the fair market value.” Meanwhile, Mr. Rellosa said the PIRA has submitted the guide rates for motorcycle taxi passengers’ personal accident coverage to the Insurance Commission (IC) for approval. The nonlife insurance industry’s net premiums written grew by 10.49% year on year to P71.84 billion in 2024 driven by the motor car business, latest IC data showed. Premiums earned went up by 6.58% year on year to P67.79 billion, while gross premiums written climbed by 9.62% to P134.12 billion. Meanwhile, the sector’s combined net income inched down by 2.63% to P8.89 billion last year. Source: bworldonline.com

Lockton has appointed Mr Tony Hardy as Asia CEO. In his new role, he will lead Lockton Asia into its next phase of growth and innovation. Mr Hardy brings a wealth of experience. Prior to joining Lockton International in 2007, he worked with JLT, Starr Excess International and Marsh.

Howden India has appointed Mr Nagarajan Girishankar as chair - reinsurance, a special designation. In his new role, he will propel Howden's marine, power and energy and property verticals. Mr Girishankar brings extensive experience. Prior to joining Howden India in 2024, he worked with Pioneer Insurance and Reinsurance Brokers, K M Dastur Reinsurance Brokers and Jubilee Insurance. He began his career with the New India Assurance in 1981. Mr Prateek Singhal will continue to head the reinsurance vertical in India.

By Michael F. Rellosa From the vantage point of an association of insurers coupled with careers steeped in the operations of an insurer, we are offered a unique view into the myriad concerns of the industry. The concerns that will be discussed here started as early as 2023 but retain their importance through 20225 and beyond. The non-life insurance sector in the Asia-Pacific (APAC) region faces an increasingly complex landscape marked by evolving customer expectations, regulatory changes, climate risks, technological advancements and economic volatility. As insurers navigate these multifaceted challenges, the need for sustainable practices that foster resilience and adaptability has become imperative. We hope to synthesize the main concerns non-life insurers face and outline strategic initiatives that can help ensure their sustainability through the short and medium term. 1. Regulatory compliance remains a significant concern for non-life insurers in the APAC region. Insurers must adhere to a diverse and dynamic regulatory environment, which affects everything from capital requirements to consumer protection standards. Additionally, with the introduction of stringent data privacy laws, insurers must ensure robust data governance practices while fully utilizing data analytics for informed decision-making. This coincides with the adoption of new financial reporting standards (IFRS 17), which insurers are still trying to understand. 2. Exposure to natural catastrophic perils. The APAC region, and in particular the Philippines, is prone to natural disasters such as typhoons, floods and earthquakes, which have increased in frequency and severity due to climate change. These events not only lead to substantial claims but also pose a challenge to traditional underwriting models. Insurers must adapt to these changes by integrating more sophisticated risk assessment tools that factor in long-term climate risks and emerging environmental regulations. 3. Digital transformation and technology adoption. The digital transformation of the insurance industry is both an opportunity and a challenge. As insurtech firms disrupt traditional business models, non-life insurers must invest significantly in digital technologies to enhance operational efficiency and improve customer experience. However, increased digitization also exposes insurers to heightened cybersecurity threats, necessitating investments in robust cybersecurity measures to protect sensitive customer data. 4. Economic uncertainty and market volatility. Economic uncertainties, exacerbated by geopolitical tensions and fluctuating interest rates, present additional challenges for insurers. These factors can adversely affect investment returns and market stability, requiring insurers to adopt more agile and responsive strategies. Moreover, evolving consumer behavior in response to economic shifts necessitates a reevaluation of product offerings and pricing strategies. 5. Talent acquisition and retention. Attracting and retaining skilled professionals is crucial for non-life insurers as they navigate these challenges. The industry faces a shortage of talent in crucial areas such as data science, technology, and risk management. Insurers must prioritize workforce development, offering ongoing training and fostering a culture that embraces diversity and innovation. Non-life insurers in the APAC region can implement a variety of strategies, either singly or in combination, to address these challenges. Following are some suggestions: – Embrace technology and innovation. Investing in digital transformation is essential for operational efficiency and enhanced customer engagement. By leveraging artificial intelligence (AI), big data and analytics, insurers can optimize underwriting and claims management. Collaborating with insurtech firms can facilitate access to innovative solutions that improve customer experience and streamline processes. – Strengthen risk management frameworks. Developing robust risk management frameworks is essential in a landscape increasingly impacted by climate change and extreme weather events. Insurers should employ advanced risk modeling tools that assess vulnerabilities and losses associated with natural disasters. Furthermore, diversifying portfolios across various lines of business and geographic markets can help mitigate risks and stabilize income streams. – Focus on sustainability and ESG initiatives. Incorporating environmental, social, and governance (ESG) criteria into business operations is becoming increasingly important. Insurers can promote sustainability by developing green insurance products and aligning investment strategies with ESG principles. Engaging with stakeholders on these initiatives enhances the reputation and attractiveness of insurers in a competitive marketplace. – Enhance customer engagement and personalization. Modern customers demand personalized experiences tailored to their needs. Insurers can utilize data analytics to offer customized insurance products and proactive risk management advice. Implementing omnichannel engagement strategies — ensuring seamless customer interactions across digital and traditional channels — can enhance customer satisfaction and loyalty. – Invest in human capital. Fostering a skilled and diverse workforce is critical for the long-term sustainability of insurers. Organizations should implement training programs that equip employees with the necessary skills to navigate emerging technologies and market changes. Promoting diversity and inclusion not only improves employee satisfaction but can also drive innovation and creativity within the organization. As the non-life insurance sector in the APAC region continues to evolve, addressing the challenges of regulatory compliance, climate risk, technological disruption, and economic uncertainty is essential for ensuring sustainability. By embracing technological innovation, strengthening risk management frameworks, focusing on ESG initiatives, enhancing customer engagement, and investing in human capital, insurers can position themselves for long-term success. With a proactive approach to these challenges, non-life insurers will not only enhance their resilience but also contribute positively to the sustainability of the broader financial ecosystem in the Asia-Pacific region. Timely adaptation and strategic foresight will be key to thriving in the rapidly changing landscape of the insurance industry. Source: manilatimes.net