The Senate approved and ratified the bicameral conference committee report on a measure seeking to amend the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, otherwise known as the CREATE MORE bill. At the chamber’s Tuesday plenary session, Sen. Sherwin Gatchalian–sponsor of the measure–stood before his colleagues to present the highlights of the conference committee report. “The Senate and House panels met and discussed to work out a reconciled version of our respective bills. We have come up with a piece of legislation that seeks to promote a more attractive investment climate by improving our tax incentives framework for registered business enterprises,” said Gatchalian. According to Gatchalian, the measure aims to clarify and streamline existing rules and policies concerning the granting and administration of fiscal incentives, ensuring that the Philippines remains a competitive destination for foreign direct investments. “The CREATE MORE Bill stands as a testament to our commitment to addressing our country’s evolving needs. It is not merely an update of policies, it is about creating a more dynamic future, a future that is more responsive, more supportive, and more capable of fostering growth and innovation for the Filipino people,” he added. The measure now only needs the signature of the President for it to become law. The House of Representatives on Tuesday likewise ratified and adopted the bicameral conference committee report on the disagreeing provisions of the lower and upper chamber’s version of the CREATE MORE bill. Source: newsinfo.inquirer.net

Higher property values, urbanization and rising repair costs due to inflation are expected to drive demand for property (re)insurance, especially in areas with intensifying natural catastrophe risks, said Swiss Re. In a statement, the global reinsurance giant said that as the insurance industry convenes for the start of the renewals at the Rendez-Vous de Septembre, growing demand for reinsurance protection to be a key topic of discussion. The conversation will also revolve around forward-looking risk assessment and capital management – as adequate risk views and volatility management are important requirements in the uncertain environment. Swiss Re property and casualty reinsurance CEO Urs Baertschi said, "The key topics for the industry remain largely unchanged from last year, but the challenges have intensified, leading to higher demand. Faced with elevated natural catastrophe risks, economic uncertainty, and geopolitical instability, reinsurance is the natural way for insurers to protect themselves from outsized losses." According to the Swiss Re Institute, 2023 was the fourth consecutive year with global insured losses from natural catastrophes above $100bn, and 2024 is heading in the same direction, with insured losses of $60bn in the first half of the year, 62% above the 10-year average. Engineering and green energy Swiss Re also sees growing demand for (re)insurance in engineering in line with the positive outlook for the construction industry, especially for renewable energy projects. To support the green energy transition, Swiss Re launched a Centre of Competence for Renewable Energy in 2023 to support its clients with expertise and products in managing their renewable energy portfolios. The cyber (re)insurance market is primed to continue its growth trajectory as awareness of both the frequency and sophistication of cyber attacks is increasing following several incidents this year. Here, the management of accumulation risk will be critical to allow efficient capital allocation. Reliable risk assessment and effective volatility management What insurers, corporates, and the public sector need from reinsurers goes beyond the core function of providing risk capacity. Modelling expertise to stay on top of the changing risk landscape, up-to-date assessments and management of exposures are becoming even more essential. An important prerequisite for modelling improvements is the effective flow of data through the risk value chain. As perils arise or intensify – such as extreme weather, rising jury awards in the US, or cyber threats, accurate and timely data is essential to recalibrate models and provide forward-looking scenarios that enable risk-adequate pricing. To achieve this, an expert-led conversation across the insurance value chain will be essential. Beyond risk transfer, insurers are turning to reinsurers for value-adding insights and solutions that can help them better understand and mitigate risk, unlock innovation, and improve performance. Capital and volatility management are further immediate concerns for insurers, especially given the current economic uncertainty. In this regard, structured reinsurance solutions can provide protection to smooth out volatility and support growth plans by improving capital management efficiencies. Swiss Re property and casualty reinsurance CUO Gianfranco Lot said, "To further progress as an industry, we need to leverage data better to predict future risk without being too anchored in the past. As a reinsurer we want to be a facilitator for our clients, helping them achieve greater precision to manage what's ahead of us." Source: asiainsurancereview.com

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The Insurance Council of Australia (ICA) yesterday launched its first roadmap setting out the strategies insurers can use to attract and retain employees with the range of skills required to meet current and future industry needs. The report, “Insurance Industry Talent Roadmap”, outlines a comprehensive six-year strategy designed to draw talent to an industry that provides purposeful and rewarding careers through a wide range of occupational opportunities. Using data from the Australian Bureau of Statistics and the industry, the roadmap estimates that 30% of the current insurance workforce is set to reach or exceed retirement age by 2030, making talent attraction, retention, and growth for this dynamic industry more important than ever. The roadmap has identified four significant workforce challenges confronting the insurance industry: Talent and skills shortage Climate change impacts on insurers’ workloads Reaching diverse talent An ageing workforce The roadmap sets out the actions insurers and the ICA must take to meet these challenges, including promoting industry capability. To support this objective, the ICA is concurrently launching an advertising campaign in Queensland and New South Wales highlighting just some of the career opportunities available in insurance. The campaign will run over three months and feature real people who work in insurance and the meaningful work they do on behalf of Australians every day. Both initiatives represent a coordinated effort by the insurance industry to build a strong, diverse, and capable workforce that can meet the challenges of the future. ICA CEO Andrew Hall said, “ Insurance is a cornerstone of Australia’s economy, with many different types of rewarding roles on which to build a career. “From frontline community assistance to data analysts understanding where AI can transform insurance, there is a wealth of job opportunities in insurance in Australia. However, recent research conducted by the ICA found that Australians have a limited understanding of the diversity of roles and the exciting career opportunities that exist in our industry. “With 30% of the sector set to reach or exceed retirement by 2030, we need to do everything we can to make known the fantastic opportunities to build a rewarding career.” Many insurers are already leading work in this space; however, the ICA also knows that more work needs to be done. Source: asiainsurancereview.com

Global reinsurers will seize the opportunity to deploy more capital over the next two years, within strict limits, says S&P Global Ratings (S&P). "Rising demand, improved pricing, and more favourable terms and conditions boosted reinsurers' appetite for property catastrophe risk during 2023," S&P credit analyst Sachin Bhojani said in the report, "Reinsurers Show Growing Appetite for Natural Castastrophe Risks". While global reinsurers' natural catastrophe risk appetite has diverged in previous years, most of the 19 largest global reinsurers rated by S&P increased their exposure to natural catastrophes during the January 2024 reinsurance renewals. S&P observed an average overall increase in risk exposure of 14%, although a smaller group of reinsurers continued to reduce theirs. Favorable reinsurance pricing and improving net investment income in 2023 and 2024 have presented reinsurers with opportunities to deploy capital and expand their property catastrophe business. Improved underwriting margins and sound investment returns, coupled with robust capitalisation, are expected to add to reinsurers' already strong buffers against exceptional shocks. Based on the budgeted property catastrophe losses at the top 19 global reinsurers, S&P calculates that return on equity could benefit by 3 percentage points from this line of business in 2024. Source: asiainsurancereview.com

The Philippine Insurance Commission (IC) has issued guidelines on the conduct of institutional risk assessment relating to anti-money laundering and combating the financing of terrorism (AML/CFT) by insurance entities to ensure that such a review is carried out comprehensively and uniformly. The guidelines follow a 2018 IC circular that requires the conduct of institutional risk assessments at least once every two years, or as often as the board or senior management may direct, depending on the level of risks identified in previous assessments or other relevant AML/CFT developments that may have an impact on the operations of IC-regulated entities. IC commissioner Reynaldo Regalado says that a risk-based strategy for AML/CFT and proliferation financing (PF) will ensure that appropriate measures commensurate with those risks are adopted to mitigate them effectively. The new guidelines stipulate three stages of the risk assessment process. These are: identification of the various ML/TF/PF threats and vulnerabilities (inherent risks) germane to the business operations of insurance entities; risk analysis, including likelihood and impact assessments; estimate of the level of each identified risk. Source: asiainsurancereview.com

Explore the premier programme and the newest featured star speakers at EAIC 2024 Hong Kong Conference Theme Back to the Future – Empowering East Asian Insurers for 2044 and Beyond Building on the Foundation and Exploring the Future More Key Topics Mission: Impossible Managing the Age Factor and Diverse Demographics   Fast & Furious Navigating Economic Uncertainty for a Resilient Future    Transformers Unlocking the Future of Insurance through Technology   Pride and Prejudice From Closing the Gender Gap to Overcoming Barriers to Access and Affordability The Pursuit of Happyness The Power of Collaboration: East Asian Insurers Uniting to Drive Sustainability   Lost in Translation Illuminating the Customer Journey and Empowering Insurance Literacy    The Day after Tomorrow De-risking Climate Change and Advancing Sustainability: Turning Promises into Action The Matrix Navigating the Complexities and Maximising Value in the Insurance Ecosystem

By Michael F. Rellosa I am aware that I have already written about this topic many times over, but until I am heard and definitive action taken, I shall continue to be the "voice in the wilderness" and shout myself hoarse. Our country, the Philippines, an archipelago nestled in the heart of Southeast Asia, is renowned for its breathtaking landscapes and rich biodiversity. However, it is equally noted for its vulnerability to natural disasters and is therefore holder of the unenviable title of "The Most Vulnerable Nation to Natural Catastrophes." It is situated along the Pacific Ring of Fire and the highway of typhoons, resulting in the country being frequented and plagued by typhoons, earthquakes, floods and volcanic eruptions. As the effects of climate change intensify, these natural calamities are becoming more frequent and severe, inflicting profound economic and social repercussions on the population. In this context, the importance of natural catastrophe insurance in the Philippines cannot be overstated. Such insurance serves as a crucial financial safety net that enables individuals, businesses and the government to recover swiftly and sustainably from disasters, thereby promoting resilience and long-term development. Natural catastrophe insurance is essential for mitigating the financial impacts of disasters. Without adequate insurance coverage, individuals and businesses face the daunting prospect of incurring immense damages that can lead to bankruptcy and poverty. For example, in the aftermath of super typhoon Yolanda (Haiyan) in 2013, millions of residents lost their homes, livelihoods and access to basic necessities. The government, facing its fiscal limits, struggled to provide adequate relief and rebuild efforts, highlighting the necessity for a systematic approach towards risk mitigation. By holding natural catastrophe insurance policies, Filipinos can secure funds that will help them rebuild their lives and businesses more efficiently after a disaster, ultimately reducing the burden on the government and improving recovery times. Moreover, natural catastrophe insurance fosters an environment conducive to economic growth and investment. The Philippines has been striving to position itself as a destination for foreign investment and tourism. However, the threat of natural disasters often deters potential investors. Investors are naturally hesitant to commit resources to areas where the risk of financial loss from disasters is high. By promoting and implementing robust natural catastrophe insurance programs, the government can instill confidence in both local and foreign investors. Knowing that there is a safety net to cushion financial losses can encourage investment in disaster-prone areas, which is essential for the country's economic diversification and development. Furthermore, natural catastrophe insurance raises awareness about risk management among individuals and communities. Policymakers and insurance companies can implement educational campaigns that help to inform citizens about the risks associated with natural disasters and the benefits of insurance. This awareness can translate into proactive measures, such as constructing safer buildings, adhering to land-use regulations, and investing in resilient infrastructure. Simple practices, such as purchasing insurance and understanding one's coverage options, empower individuals to take responsibility for their financial security. In the long run, this shift in mindset promotes a culture of preparedness and resilience, which is vital in a country like the Philippines, often viewed as a case study in disaster response. However, it is important to note the challenges facing the natural catastrophe insurance market in the Philippines. High premiums, often due to the frequency and severity of disasters, limit access to insurance coverage for lower-income populations. This gap in coverage further entrenches socioeconomic disparities, as the most vulnerable sectors remain exposed to the devastating effects of natural disasters. To remedy this, there must be concerted efforts among government agencies, non-governmental organizations, and insurance providers to develop affordable insurance products and ensure that subsidy mechanisms are in place for those in need. The development of community-based insurance schemes could also serve as a viable alternative, enabling low-income families to pool resources and mitigate their risks collectively. In conclusion, the importance of natural catastrophe insurance in the Philippines is underscored by the country's geographical realities and the escalating frequency of severe weather events. It plays a pivotal role in not only facilitating recovery from disasters but also in fostering economic stability, promoting investment, and encouraging risk awareness among citizens. While challenges remain in expanding coverage and accessibility, the potential benefits that natural catastrophe insurance can offer far outweigh its limitations. As the world grapples with the implications of climate change, prioritizing disaster risk management through insurance will be essential for safeguarding the future of the Filipino people and ensuring that they can thrive in the face of inevitable challenges posed by natural calamities. Promoting a sustainably resilient society should remain a quintessential goal for all stakeholders involved in disaster risk reduction and economic development in the Philippines. Source: manilatimes.net

PIRA is a supporting organization to the Asia Insurance Summit on ESG & Sustainability, taking place on 28-29 October 2024 at the PARKROYAL COLLECTION Marina Bay, Singapore. With the theme “Charting Responsible Business Strategy and Insurance Leadership,” the summit aims to bring together key stakeholders from across the insurance industry, government agencies, and the development sector to explore strategic approaches to integrating ESG principles and driving sustainable practices within our industry. Members of PIRA can take advantage of special discounts by utilizing the PIRA Registration form. Download eBrochure For more information, kindly visit: https://www.asiainsurancereview.com/Events/Home/Asia/AIRsustainable2024