(from left) Insurance Institute of Asia and the Pacific (IIAP) President Raul Tan, IIAP Chairman of the Board of Trustees Herminia S. Jacinto, Insurance Commission Deputy Commissioner Atty. Martin Yasay and IIAP Treasurer Esther Tan lead the ribbon-cutting ceremony celebrating the IIAP’S 50th Anniversary. The insurance industry will sustain income growth with the increase in the minimum capital requirement for local companies, according to an industry leader. Insurance Institute for Asia and the Pacific (IIAP) Chairman of the Board of Trustees Herminia S. Jacinto told the BusinessMirror on Friday that she is optimistic about the growth prospects for life and non-life insurance sectors. “With an increase in their net worth, confidence among the public to purchase insurance products would also increase,” Jacinto said. A high net worth would ensure the stability of local insurance companies and help them maintain their good financial position. This, in turn, would give assurance to insureds that the companies have the capacity to settle claims. Under Republic Act 10607 or the Amended Insurance Code, existing insurance companies are required to have a net worth of at least P550 million by December 2016, P900 million by December 2019 and at least P1.3 billion by December 2022. Data from the Insurance Commission (IC) showed that the net income of the insurance industry grew 44.98 percent to P14.287 billion in the first quarter from last year’s P9.855 billion. Insurance density, or the amount of premium or average spending of an individual on insurance, rose by 10.66 percent to P965.56 as of end-March from P872.56 in the same period a year ago. Despite this, insurance penetration, or the share of the sector to the country’s gross domestic product (GDP), remained low at 1.78 percent in the first quarter. Jacinto attributes the low insurance penetration to the affordability of the insurance products. “Ideally, we should insure all properties, but being able to afford it is still an issue,” she added. IIAP, the center of learning for executives and employees of life and non-life insurance industries, aims to fill in the gap by reaching out and equipping potential buyers of insurance. Jacinto said apart from training insurers to effectively and genuinely sell insurance products, the IIAP also makes the public understand the importance of taking out insurance policies. “We’re trying to teach other people, especially the younger ones, to appreciate insurance and help us propagate,” Jacinto added. Data from the IC showed total lives insured reached 83.678 million in 2023, higher by 9.50 percent than the 76.419 million lives insured in 2022. Source: businessmirror.com.ph

Natural catastrophes jumped by five places to become the top risk named by businesses in Hong Kong, according to the Allianz Risk Barometer 2024, the 13th edition to date. The proportion of businesses that ranked this risk increased to 33% in this year’s report, more than twice that in the 2023 Barometer. One reason for this could be the catastrophic flooding in the territory in 2023 when Typhoon Haikui lashed Hong Kong and was the wettest storm in the territory's history. New risks listed among the top 10 this year were market developments and the shortage of skilled workforce.  The top 10 risks in Hong Kong in 2024 are:   Global Worldwide, cyber incidents (36%) are the biggest worry for companies in 2024, followed by business interruption in second place, and Nat CAT in the third position. The 13th Allianz Risk Barometer incorporates the views of 3,069 respondents from 92 countries and territories. The annual corporate risk survey was conducted among Allianz customers (businesses around the globe), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of Allianz Commercial and other Allianz entities. Respondents were questioned during October and November 2023. The survey focused on large, smaller and mid-size companies. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important. Most answers were for large-size companies (>$500m annual revenue) [1,340 respondents, 44%]. Mid-size companies ($100m+ to $500m revenue) contributed 792 respondents (26%), while smaller enterprises (<$100m revenue) produced 937 respondents (30%). Risk experts from 24 industry sectors were featured. Source: asiainsurancereview.com

The "dynamic nature of maritime trade makes speed and service particularly important", according to Markel senior underwriter - marine Wanshi Lin. “A decision on whether insurance cover is available can often be required within a few hours of a vessel’s transit, such as those shipments choosing to sail through the Red Sea instead of diverting around the Cape of Good Hope,” she said. Ms. Lin also said that this accentuates “the importance of policyholders having real-time access to decision makers to manage their exposure and get requisite insurance support”. The speed of insurance support can also be improved with big data, she said. “War breach insurance currently requires a ship owner to seek clearance from its insurer before entering a breach zone. “An alternative would be to use geolocation data to automatically obtain insurance cover, subject to pre-agreed terms and sanctions compliance. In the long run, this should reduce the administrative cost for all parties in a transaction, ultimately providing better value to the end policyholder,” she said. According to Ms. Lin, a trend in Asia over recent years is that of regulators and policyholders increasingly desiring closer access to insurance capital and decision making, leading to an increase in onshore foreign insurers. “Closer proximity encourages the insurance industry to respond to specific local needs that may, at times, be more advanced than in other regions,” she said. An example, she believes, was the Port of Singapore Authority’s ambition to reduce its absolute carbon emissions by 50% by 2030. “Steps towards this have included the proposed introduction of battery-operated port craft – some of the first globally – that require specific new local insurance solutions,” she said. Source: asiainsurancereview.com

A high frequency of small to medium events resulted in global insured losses from natural catastrophes of $60bn in the first half of 2024, according to Swiss Re Institute's preliminary estimates. Severe thunderstorms, mainly in the US, accounted for 70% of global insured losses. Mr. Balz Grollimund, head of Catastrophe Perils at Swiss Re, said, "In recent years, severe thunderstorms have emerged as a main driver of a significant increase in insured losses. This is due to growing populations and higher property values in urban areas, along with insured property being more vulnerable to hail damage. Therefore, multi-billion-dollar loss events from this peril are likely to become more common." Thunderstorms or severe convective storms (SCS) are characterised by strong winds including tornadoes, hail, and heavy rain. In total, these led to insured losses of $42bn globally in the first half of 2024. In the US, 12 storms each caused losses of $1bn or more, demonstrating the loss potential of this peril. According to Swiss Re Institute's sigma 1/2024 ,  insured losses from SCS in the US have increased by around 8% in nominal terms annually since 2008. Mr. Jérome Jean Haegeli, Swiss Re's group chief economist, said, "Insured losses from severe thunderstorms have been growing due to a mix of factors including inflation, which has contributed to rising construction costs. And, with economic development, overall exposures will continue to increase. That's why investing in protective measures – such as shielding vulnerable communities from floods or improving building codes to protect homes from severe hailstorms – is vital." Floods also caused above-average losses, driven by events in the UAE, Germany, and Brazil, and accounted for 14% of global insured losses. In April, torrential rain caused by severe thunderstorms led to flash floods on the Arabian Peninsula, resulting in unprecedented damage in the UAE. According to industry estimates, insured losses will likely amount to at least $2bn, making it the country's costliest natural disaster on record. While heavy rainfall is expected to increase in a warmer climate, swift urban growth, land use alteration, scarce drainage systems, and dry soils intensify loss severity. Source: asiainsurancereview.com

By Herminia S. Jacinto Yes, the Insurance Institute for Asia and the Pacific, better known as IIAP, is 50 years old! It was founded in August 1974 under Presidential Decree 530 issued by then-president Ferdinand Marcos Sr., upon the recommendation of former insurance commissioner Gregoria Cruz-Arnaldo. Madam commissioner Arnaldo had the foresight of establishing an insurance school where the insurance employees can acquire the training for the various lines of insurance. The mission was clear — to elevate the standards of insurance and reinsurance across developing countries in Asia and the Pacific. This mission was further highlighted in the Round Table Meeting of Insurance Executives in April 1979 where IIAP was designated as one of the four centers tasked with advancing the industry standards. IIAP was the first institute in the Asian region. Through the relentless efforts of commissioner Arnaldo, she got a lot of support from the insurance companies in the Philippines. The Ayala group of insurance companies, composed of the Insular Life Assurance Co. (before it was mutualized), the Filipinas Life Assurance Co., the FGU Insurance Corp. and the Universal Reinsurance Corp., donated the lot and building in Alabang to be the first home of IIAP. The other insurance players in the country contributed toward making the IIAP a suitable place for learning. Participants came from all over Asia. IIAP had to construct dormitories for the foreign participants since there were no hotels then in the area. IIAP can say, with great pride, that it is the forerunner of many of the other institutes of insurance in the region. Over the 50 years of its existence, IIAP has become the place where one can get both basic and specialized courses in various lines of insurance, life and nonlife. The most patronized course is the Basic Nonlife Insurance Course, which teaches the students the basics of various lines like, fire, marine, aviation, motor, personal accident, and many more. Our local insurance companies require and send many of their employees to take this basic course. To make it easy for employees of branches of these companies located outside Manila or Makati, IIAP brings these courses to the provinces in coordination with the branch officers or with some of the insurance organizations in the area. IIAP has also forged a relationship with the Chartered Insurance Institute (CII) where a student can earn a certification degree from CII after passing the Basic Nonlife Insurance Course and taking the series of online examinations administered by CII. The institute is an active member of the Asean Insurance Council education committee which conducts lectures and seminars on topics of interest to the insurance practitioners in the region. One such topic is Reinsurance, which is jointly sponsored by the insurance institutes with global reinsurance experts as lecturers. The course is offered online so participants from all over the region can attend. One benefits not only from the lectures but also from meeting other reinsurance players with whom they can exchange business. IIAP does not offer technical courses only. There are also management, communication and financial reporting subjects to make the insurance player an all-around employee or executive. In an earlier column, I talked about the Select Universities Insurance Training Scholarship program. This is a 10-week training program for qualified graduates from the various universities in the country to undergo comprehensive training in various subjects of insurance. After graduation, these participants are farmed out to insurance companies who may need them. This is IIAP's way of helping the insurance industry discover or find talents for their companies. As of this writing, there are now discussions with a group of seasoned industry executives to develop a course on Leadership and Management to prepare existing talents in the company for higher positions. Turning 50 is indeed a milestone for the IIAP. We are now recognized as a place of learning by the insurance industry in the region and other countries. IIAP will strive to provide more services to the industry as we move on to the next 50. The institute is managed by a board of trustees composed of 15 men and women who are experts in various fields of insurance. Classes are conducted in the 26th floor of the BPI Philam Building along Ayala Avenue in Makati or in various sites in the provinces as needed. Herminia "Ming" Jacinto is chairman of IIAP. Source: manilatimes.net

The  Insurance Institute for Asia and the Pacific (IIAP)  cordially invites you to a  FREE SEMINAR on " ESG and Sustainability Forum". This seminar will focus on the critical role of sustainability and Environmental, Social, and Governance (ESG) principles in financial sector.

Reserve Your Spot Today! 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   Minority Report The Role of Regulators beyond Fostering Stability and Consumer Protection   Lost in Translation Illuminating the Customer Journey and Empowering Insurance Literacy   The Matrix Navigating the Complexities and Maximising Value in the Insurance Ecosystem   The Hunger Games Surviving and Thriving in the Talent Arena

The Southwest Monsoon or Habagat enhanced by Super Typhoon  Carina  has left P203.38 million worth of agricultural losses, the Department of Agriculture (DA) reported Thursday. In its bulletin, DA said the affected areas are Nueva Ecija, Pampanga, Oriental Mindoro, Romblon, Aklan, Capiz, Iloilo, Negros Occidental, Southern Leyte, Zamboanga Sibugay, Zamboanga del Sur, Agusan del Sur, and North Cotabato. The DA said majority of the agricultural loss is rice, which was placed at 2,299 metric tons (MT). Other agricultural commodities affected include high value crops, corn, and livestock and poultry. The DA also logged 2,323 animal losses. Meanwhile, the agricultural losses incurred from Carina-enhanced Habgat affected 9,198 farmers, with a volume of production loss at 2,574 MT. The DA, however, noted that the figures are subject to further validation. The National Disaster Risk Reduction and Management Council (NDRRMC) earlier reported that the country sustained P9,706,852 worth of agricultural damage from the recent weather disturbance. The DA said it will aid the farmers by distributing 72,174 bags of rice seeds, 39,546 bags of corn seeds, 59,600 pouches, and 1,966 kilograms of vegetable seeds. The agency added that they will also help the farmers through the Survival and Recovery Loan Program, Quick Response Fund, and the Philippine Crop Insurance Corporation's funds. Carina exited the Philippine Area of Responsibility on Thursday morning but Tropical Cyclone Wind Signal No. 1 remained hoisted over Batanes. Source: gmanetwork.com

The Insurance Commission (IC) is planning to issue rules governing the mandatory insurance for overseas Filipino workers (OFWs). The regulator is considering launching pilot schemes in certain regions for this, insurance commissioner Reynaldo A Regalado told the local media. The regions are Asia, the Middle East and North America. “We’re preparing the proper circular, but we’re coordinating with the department of migrant workers (DMW) on the manner in which we’ll be executing this (to ensure they do not violate) not only of our law, but also the laws and rules of the host country,” Mr Regalado said. The IC will have to coordinate too with the department of foreign affairs. He said that the rules have to take account of a law allowing insurance companies to sell policies only to Filipinos in the Philippines. “We cannot remove that. We have to see how best we can have that implemented. There must be some way, even prior to entering a foreign country,” Mr Regalado said. DMW statistics indicate that there were about 2.33m OFWs as of 2023. Source: asiainsurancereview.com

Join Philippine Insurers and Reinsurers Association (PIRA) at the 2024 Asian Banking & Finance and Insurance Asia Forum - Manila for invaluable insights from the industry experts and a chance to network with your industry peers. Mark your calendar for October 1st and secure your seat today! For more information, kindly visit: insuranceasia.com