Climate risks, disruptive technology and geopolitical instability are the top emerging risks according to an annual survey of risk managers. The new survey has been jointly published by the Casualty Actuarial Society and the Society of Actuaries. The 18th annual edition of emerging risk survey is based on an online assessment conducted in November 2024 and includes 201 participants, primarily risk managers from North America, Bermuda, the Caribbean, Europe, South America, Asia, Africa and the Middle East. The survey uses four categories to measure risks as perceived by risk managers: top current risk, the leading five emerging risks, overall emerging risk and emerging risk combinations. Climate change has dominated the top of the emerging risk lists since 2021 but in 2024 it shared the top spot with geopolitical instability — including civil wars. Concerns about the impact of AI have driven the upward trend of disruptive technology as an emerging risk. Cyber security and manipulation are particular hazards chosen by survey respondents. Also, survey respondents have cited the risk of failed and failing states increasingly less often since the 2010s, and trend changed in 2023, steeply increasing since then. On the other hand, the selection of asset price collapse risk and financial volatility as current or emerging risks have reached new lows in the latest survey findings. The top emerging risks chosen by risk managers in the survey reflect recent events. These include the continuing conflicts in Ukraine and the Middle East, hurricanes Milton and Helene, the downward trend of inflation and interest rates. Survey authors actuary David Schraub and financial consultant Max Rudolph said the survey “compiles trends about risks that extend longer than the time horizon used for standard industry planning cycles. “This analysis provides helpful ways to understand how actuaries and risk managers disconnect from day-to-day operations and take a long-term view of risk and to see how these views have evolved over time.” To mitigate the potential of recency bias, the organisers will conduct a midyear flash survey to be fielded in May 2025. Source: asiainsurancereview.com

Insurers in Australia received more than 3,950 storm and flood claims till early February 2025. These claims are related to recent severe weather and flooding event in north Queensland, which was declared a Significant Event by the Insurance Council of Australia (ICA) on 2 February 2025. The ICA has said it is still too early to estimate the total damage bill as many communities remain isolated and an ongoing and active event for many. In a statement the ICA said while the threat is not over for some regions, others are starting the clean-up process. It said that in the immediate aftermath of a flooding event, it is important that safety remains the number one priority. The ICA said it encourages policyholders to file their claims as soon as possible, even if the full extent of the damage isn’t yet known. ICA CEO Andrew Hall said, “While the true impact of this event on property, business and infrastructure remains to be seen, we know the road to recovery can be difficult. Mr Hall said, “As expected, claims continue to grow from this widespread event and insurers are committed to supporting policyholders through the claims process, both in person at the Insurance Hub and via usual communication methods. Safety is always top priority so we encourage residents to only return home and begin the clean-up process when it’s safe to do so.” The ICA declared a ‘significant event’ for regions of North Queensland impacted by storm and flooding over the past few days.With this the ICA's preliminary catastrophe processes have been activated, assisting the ICA and insurers to assess the insurance impact of the current flood event. Under a significant event declaration, the ICA commences its claims data collection, analysis and reporting processes in consultation with members. This event may next be escalated to an insurance catastrophe if there is a significant increase in claim numbers or complexity or if the geographical spread of this event is extended and in consultation with insurers. The impact of the recent flooding has been felt most significantly in communities in and around Townsville, Innisfail, Ingham, Gordonvale and Cardwell, however all regions impacted by flood in North Queensland and Far North Queensland since 29 January 2025 fall under the significant event declaration. Source: asiainsurancereview.com

New research from the New Zealand Infrastructure Commission Te Waihanga has revealed how insurance can help the country to manage natural hazard risks and how to prepare infrastructure for a changing climate. The 53-page report Invest or insure? Preparing infrastructure for natural hazards based on the Commission’s research and published in February 2025 looks at how insurance can help decide if, when and by how much to invest in infrastructure adaptation or resilience. It says that insurance prices rise as risks to assets, like the chance of flooding, and the cost to repair or rebuild go up. The report said investing to make infrastructure more resilient or adapt to changing risks can also bring down the cost of insurance. When infrastructure providers measure their risks and price them through insurance, they can make better risk management decisions by looking at whether the cost of resilience investments are matched by benefits from lower insurance premiums. The Commission general manager of strategy Peter Nunns said, “New Zealand has experienced some significant natural events in recent years. In dollar terms alone, we have seen at least $10bn in infrastructure rebuilding costs from two large earthquakes and two storms since 2012. And that doesn’t of course include the impact of these events on people’s lives and businesses or the economy.” Mr Nunns said not only is the likelihood and size of the catastrophic events such as storms expected to grow in coming years but the replacement cost of infrastructure is growing too. “On an inflation-adjusted, per-person basis, public infrastructure is now worth 70% more that it was in 1990. So, the cost of replacing it after a natural disaster is rising at the same time as the likelihood of a disaster is rising. It’s more important than ever to make good decisions about when and how to reduce risks and minimise costs.” According to the report the providers must also factor in other costs – such as risks to public safety or damage caused by the failure of their infrastructure. These economic and social consequences can also be added to the providers’ insurance and resilience appraisal. Mr Nunns said the last time a review of insurance coverage for public assets was undertaken – over 10 years ago – it found that less than half of public assets were insured. He said, “This is challenging, as our research shows that, in addition to helping to smooth out the costs of responding to natural hazards, insurance can also help infrastructure providers make better decisions about when and how to reduce risk and minimise costs.” “Risks change over time. A risk management decision made yesterday might not be the best decision for tomorrow. It’s important that infrastructure providers consider this in their long-term asset management planning.” The major findings of the report include the following: There is no single best approach to managing natural hazard risk to infrastructure. Instead, the optimal approach will vary depending on many factors, including likelihood and consequence of the hazard, and the relative cost of different options in different situations. To manage risk well, infrastructure providers need to have a good understanding of their assets and the risks to which they are exposed. They will also need the capability to assess their options and optimise their response to risks from natural hazards. However, at a national level, we lack comprehensive and consistent hazard data for providers to use to assess their risk. Quantifying risk and/or pricing it through insurance premiums, can help clarify the optimal risk management approach for infrastructure assets. Optimal resilience investments should reduce risk management costs, compared to continuing to pay risk related insurance premiums. When resilience investments are more costly than insuring risk, they may not be warranted. The optimal level of resilience will depend on the relative cost of resilience investments compared to the expected cost of (and the benefits we get from) the assets being protected. We can increase the case for resilience investment by focusing on keeping infrastructure delivery costs down. Conversely, rising infrastructure delivery costs will erode the case for resilience investments. Source: asiainsurancereview.com

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Surging health insurance premiums in Malaysia have caused public distress to the extent that the Public Accounts Committee (PAC) of the country's parliament has decided to hold public hearings on the issue. It would be for the first time that the PAC will hold open public hearings on rising health insurance and takaful premiums and private hospital fees. The PAC will hold two hearings one each in Penang and Kuala Lumpur. The public hearings to be held in February 2025 will hear public’s views and debate on rising private hospital fees, increasing insurance premiums and their impact on public healthcare. The takaful premiums too have seen a surge. According to the complaints received the health insurance premiums have risen by as much as 30%-50% despite a cap of 10% by Bank Negara Malaysia (BNM). The PAC in a press statement has acknowledged the growing public complaints about uncontrolled hikes in private hospitals fees and health insurance premiums. While the committee has welcomed the efforts being made by the government and the BNM to cap premium increases, it said the problem needs long-term solutions. According to the PAC’s statement to support private healthcare reforms, the committee aims to conduct a comprehensive inquiry involving all stakeholders and public input. 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. The PAC statement has emphasised that public views will be heard openly and included in its report before being tabled in the parliament. After these public hearings, the committee will conduct closed-door meetings under Dewan Rakyat Standing Order 85, summoning major stakeholders from ministries, agencies and industry players. “The PAC invites everyone including (and not limited to) complainants against insurance companies and private hospitals, insurance policyholders, consumer association representatives, insurance agents, private hospital management, medical specialists, hospital staff, pharmaceutical firms, NGOs, academics, and health care experts.” Both public hearings will be moderated by PAC member and Bayan Baru member of parliament Sim Tze Tzin, who had launched a public channel for complaints on healthcare costs. The channel has received around 300 complaints highlighting steep premium hikes that disproportionately affect retirees and individuals with non-communicable diseases like cancer. Other concerns include price disparities between insured and uninsured patients, as well as excessive private hospital charges. Source: asiainsurancereview.com

The Philippine Crop Insurance Corp. (PCIC) has partnered with G-Xchange to allow farmers to receive indemnity payouts directly through GCash. This initiative aims to make the payment process more convenient, eliminating the need for farmers to visit PCIC offices or attend check distribution events. PCIC president JB Jovy Bernabe stated that the collaboration will streamline the distribution of indemnity payments, offering a more efficient solution for farmers. Beyond indemnity payments, the partnership connects farmers to GCash’s financial services, such as savings, investments, and microfinancing. This expansion strengthens financial stability, especially in remote areas with limited banking access. Source: asiainsurancereview.com

Indian insurance industry leaders have called for removing the goods and services tax (GST) on insurance premium. Speaking with Asia Insurance Review, Canara HSBC Life Insurance MD and CEO Anuj Mathur said, "Affordability is key to making insurance accessible to all. Revisiting GST rates on life insurance premiums could enhance affordability, especially for lower and middle-income groups. “A reduction in GST would ease the financial burden, encourage wider adoption, and align with IRDAI’s vision of financial protection for every Indian. This move would reaffirm the government’s commitment to social security and financial resilience nationwide." Bajaj Allianz Life Insurance MD and CEO Tarun Chugh told Asia Insurance Review that India's economic growth presents immense opportunities for the insurance sector to enhance financial resilience. Anticipated income tax cuts in the upcoming budget could boost disposable income, driving higher life insurance penetration. Mr Chugh said, “With the elderly population (50+) projected to grow by 22% in the next six years, incentivising pension products is imperative. Aligning tax deduction of life insurance annuity products with the National Pension Scheme (NPS) and addressing the issue of tax on principal component on annuity products can evolve retirement needs effectively.” Ageas Federal Life Insurance MD and CEO Jude Gomes said, “Revising the GST on term life insurance policies will reduce the cost of essential protection plans. A ‘zero rating’ for schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (Prime Minister Life Assurance Scheme), smaller policies (up to $2300) and annuity products for NPS subscribers will expand access to insurance, ensuring inclusivity and sustaining growth.” Tata AIA Life Insurance director on the board and ex-member of IRDAI Nilesh Sathe has said the goods and services tax on insurance premiums should be removed since insurance is a necessity, and this would make insurance more affordable and cheaper for people, potentially leading to increased penetration in the market. Mr Sathe said, “Currently, GST on insurance has increased from 6% to 18%, however, this should not be seen merely as a revenue source for the government” Star Heath and Allied Insurance MD and CEO Anand Roy said, “Currently, an 18% GST is levied on health insurance premiums, significantly impacting affordability, especially for low- and middle-income families. Reducing this GST rate would make health insurance more accessible to these groups. Retaining the benefit of Input Tax Credit deductions for insurers could also help keep premiums competitive, aiding industry growth and advancing the government’s healthcare objectives.” 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

The global reinsurance sector is in a stable position for 2025, said S&P, according to its latest report on the topic. The ratings agency is expecting strong operating profits, aiding global reinsurers in earning their cost of capital in 2024-2025.  Reinsurers are also benefiting from favourable pricing, supported by terms and conditions in short-tail lines, overall underwriting discipline, and increasing reinsurance demand. In addition, the industry continues to gain from strong investment income due to high bond yields. The sector also saw robust capitalisation that was redundant at the 99.99% confidence level at year-end 2023 and expected to remain so through year-end 2024, providing a cushion for potential stresses. Favourable reinsurance pricing, supported by terms and conditions in short-tail lines, overall underwriting discipline, and increasing reinsurance demand, adds to the tailwinds that the sector is experiencing. Global reinsurers generated a strong combined ratio of 91.5% in 2023, significantly better than the previous four-year average of 99.5%. This positive trend continued into the first nine months of 2024, with generally accepted accounting principles (GAAP) filers' combined ratios in the low 90s and IFRS 17 undiscounted combined ratios of low to mid 90s. “We expect strong results in 2024-2025, driven by overall still-favourable pricing in short-tailed lines. Natural catastrophe losses and U.S. casualty adverse developments in certain lines are key risks,” S&P said. Headwinds However, the reinsurance sector continues to grapple with elevated natural catastrophe influenced by inflation, urbanization, and climate change. Global insured natural catastrophe losses in 2024 reached $145bn, surpassing $100bn for the fifth year in a row. Reinsurers have made structural improvements and lowered exposure to high frequency events in 2023 and 2024, though primary perils remain a big risk for the sector. At the same time, property catastrophe reinsurance pricing has given ground globally, although S&P believes that pricing is still favourable. These pricing declines can be linked to increased reinsurance capital, leading to a heightened readiness to deploy capacity. Reinsurers also appeared to offer more flexibility on limits and terms and conditions, the report said. Additionally, economic inflation, although abating, and social inflationary concerns, as reflected in adverse loss cost trends in certain US casualty lines, remain as challenges for the sector. Potential financial market volatility and geopolitical tensions may impact both sides of the balance sheet, coupled with a relatively high cost of capital, the report said. Source: asiainsurancereview.com

A report by the Australian Bureau of Statistics (ABS) has said that insurance premiums have surged by an average of 11% over the past 12 months. It was just about a year ago that a devastating storm tore through Victoria's Gippsland region. According to news reports some residential properties in the region have seen their insurance premium surge by as much as 250% in the last 12 months. Insurance customers have said now it is a choice of putting food on the table or paying for the insurance. A press release by ABS said, “Insurance prices rose 11.0% in the 12 months to November 2024, softer than the 14.0% rise in the 12 months to October 2024. Higher reinsurance, natural disaster and claims costs continue to contribute to higher premiums for house, motor vehicle and home contents insurance over the past 12 months. The release said, “In monthly terms, insurance rose 1.1%, with easing reinsurance and replacement and repair costs in recent months contributing to a moderation in insurance premium price growth across all policy types. Experts and industry watchers have said that premiums will only continue to rise, with millions of homes under threat of natural disasters like bushfires and floods. Australian Council of Social Service chief executive Cassandra Goldie told media personnel, "Home and contents insurance was the first essential item people stopped paying for when things get tough." Press reports say pressure is building on the federal government to step in before the upcoming election after a senate inquiry late last year made a number of recommendations for the Australian Competition and Consumer Commission to monitor prices and push premiums down. Insurance Council of Australia executive director Andrew Hall recommended shopping around for a better insurance deal. Mr Hall suggested that homeowners should reach out to their insurer to enquire about payment plans and consider increasing their excess in order to reduce their premiums. The Australian Bureau of Meteorology has predicted an increased risk of extreme events in the country during this summer, with storms and flash flooding already hitting parts of the Brisbane and surrounds. Extreme weather can strike at any time; however, insurers see a greater number of events between October and April. Since 2013, 78% of all declared insurance catastrophes have taken place between October and April and 90% of catastrophe-related losses have been incurred in those months. Source: asiainsurancereview.com