Ferocious wind reported in Acapulco is preliminary but would rank among top 10 highest on record if confirmed. A weather station near Acapulco measured a 205 mph wind gust, one of the highest ever observed in the world, as Category 5 Otis made landfall last Wednesday as the strongest hurricane on record to strike the west coast of Mexico. The storm killed more than 40 people and produced catastrophic damage in and around Acapulco, with economic losses expected to top $10 billion. The wind gust reported by the National Tidal Service is preliminary but if confirmed it would rank in the top 10 wind gusts ever observed globally. Weather agencies such as the National Hurricane Center and the World Meteorological Organization (WMO) typically confirm extreme observations through post-storm analysis. The strongest wind on record is a 253 mph gust on Barrow Island in Australia during Tropical Cyclone Olivia on April 10, 1996, according data from the World Meteorological Organization. Before then, Mount Washington held the wind record with a 231 mph gust on April 12, 1934. And more recently, a 213 mph gust was measured on Orchid Island in Taiwan last month during Typhoon Koinu. Extreme winds often go unrecorded because such gusts can either damage or destroy instrumentation. In this case, however, the weather station operated by the National Tidal Service “was the only element to remain completely standing” near the observing site “since the entire perimeter fence disappeared,” the agency said on X, formerly known as Twitter. Otis stunned forecasters when it intensified with record-challenging haste, its winds jumping 90 mph in just 12 hours, and 115 mph in 24 hours, before slamming into Acapulco with maximum sustained winds of 165 mph. Most computer models only predicted Otis to become a Category 1 hurricane, leading to what meteorologists had described as a “nightmare scenario” when it unexpectedly turned into a Category 5 before making landfall in a major population center. The death toll from the storm reached at least 46 on Wednesday as dozens of people remained missing. Acapulco and nearby areas were still recovering from massive power and communication outages, no public transportation, limited phone service, and food and water shortages. Around 274,000 homes were damaged or destroyed, around 120 hospitals and clinics were damaged, and around 600 hotels and condominiums were affected. Economic losses are expected to be in the billions. “The direct physical damage and net-loss business interruption costs from Hurricane Otis will result in a minimum $10 billion in economic losses,” Steve Bowen, chief science officer for the global reinsurance broker Gallagher Re, wrote in an email. “It will be one of the costliest natural catastrophe events on record for Mexico.” Bowen continued, “A particular concern is that a majority of homeowners in Acapulco do not have insurance, and even a portion of commercial real estate is not insured either. This will mean a sizable segment of the damage either being uninsured or underinsured.” Verisk, a data analytics and technology firm, has estimated insured losses of anywhere from $3 billion to $6 billion, most of it because of the extreme winds. “The coastline of Acapulco contains many larger apartments and condominium buildings as well as hotels. Many of those had a majority of the windows blown out,” Verisk said in a news release. “Roof covering damage was also noted on many buildings near the coast. Smaller commercial and residential buildings in Acapulco saw major damage as well, with cladding tossed from walls, roofs torn off and debris scattered.” Verisk noted it predicts that Otis will “become one of the most expensive events (if not highest) on record for the Mexican insurance market.” Source: washingtonpost.com

Insurance pricing in the third quarter in Asia was flat, the same as in the prior quarter, according to the latest Marsh Global Insurance Market Index. In its report titled “Global insurance market index Q3 2023 - Pricing continues to stabilize; property line remains challenging”, the world’s biggest insurance broker, Marsh, makes the following comments about pricing in Asia: Property insurance pricing rose 2%, the same as in the prior six quarters. • Some countries, including China and Korea, experienced small pricing decreases, which were offset by pricing increases related to CAT exposure in the region. • While most domestic insurers demonstrated a return to profitability in their 1H2023 results, some remain cautious regarding the remainder of the year, given North Asia’s recent experience with strong weather patterns late in the third quarter. • Clients in CAT-exposed geographies faced greater scrutiny from insurers. • While inflation continued to ease from the peaks of 2022, insurers remained vigilant on the impact on their portfolios and maintained requests for updated valuations. Casualty insurance pricing fell by 2% in the quarter, the fourth consecutive quarter of decline. • Pricing reflected abundant capacity and in-country competition between international and local companies, as well as decreased turnover for many insureds. • Casualty insurers continued to scrutinize US exposure due to the size of awards and settlements. • Workers’ compensation and auto liability rates were typically competitive across the region, with pricing decreases experienced in several countries. • Issues at top of mind for insurers included per- and poly-fluoroalkyl substances (PFAs); bushfire liability, particularly as the El Niño weather cycle begins; product recall; North American exposure; and the claims inflation environment. Financial and professional lines pricing declined 3% in the quarter, after declining 5% in the prior quarter. • D&O rates continued to generally decline, with double-digit decreases in several countries. • There was increased appetite and capacity available from local markets for US-listed companies, resulting in pricing competition and in many instances, reduced rates. • Pricing was stable for the financial institution sector, with improved terms and coverages offered by insurers in many cases. Cyber insurance pricing was flat in the quarter, following an 8% increase in the prior quarter. • Cyber rates stabilized as the market’s risk appetite and capacity increased. • Underwriters continued to focus on cybersecurity controls; some coverage areas continued to face greater scrutiny, especially regarding war perils, given current geopolitical tensions. • Ransomware severity and the sophistication of bad actors continued to increase. • Data encryption and business interruption were the most impactful loss drivers. Global Globally, commercial insurance pricing rose by 3% in the third quarter of 2023, the same as in the prior quarter, according to the report. This was the 24th consecutive quarter in which composite pricing rose, continuing the longest run of increases since the inception of the index in 2012. Increases peaked at 22% in the fourth quarter of 2020. Regionally, composite pricing for the third quarter was as follows US: +4% UK: -1% Canada: -1% Europe: +4% Latin America and the Caribbean: +10% Asia: Flat Pacific: +1% India, Middle East, and Africa: +3% Source: asiainsurancereview.com

East Asian insurance markets need to further exchange information through the forum provided by the East Asian Insurance Congress (EAIC) to raise awareness about environmental and social issues, and to respond to this paradigm shift on an industry level, says Mr. Masayuki Tanaka, the EAIC general secretary. The Life Insurance Association of Japan has published Mr. Tanaka’s message ahead of East Asia Insurance Day, which falls on 18 October each year. In his message, Mr. Tanaka says that insurance companies are expected to play a role in providing not only “protection”, which is to reduce the underlying risks, but also in fostering “prevention”, which is to improve people’s quality of life (QOL) by preventing accidents and illnesses, as well as promoting healthy lifestyles. He adds that many companies have been incorporating SDGs (Sustainable Development Goals) into their management philosophy. insurance companies, which play a role in complementing social insurance, are expected to take a role in solving such social problems as well. From a global point of view, assessment reporting on climate change, biodiversity and ecosystem services—for example, the Intergovernmental Panel on Climate Change (IPCC) and the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)—are becoming common, demonstrating that a higher level of global warming and the deterioration of natural resources undermine human well-being significantly, says Mr. Tanaka. He adds, “I sincerely hope that as the East Asia Insurance Day becomes more widely known, insurance literacy in each country will deepen, contributing to the development of the entire Asian region.” Commenting on efforts made by the LIAJ in this arena, Mr. Tanaka says, “While steady efforts such as disseminating information regarding the insurance system through the media and providing lectures at universities have contributed to improved literacy in these countries, the LIAJ has also contributed byline articles for several publications in and outside Japan, and has provided EAIC related information on its website.” East Asia Insurance Day was established during the 23rd EAIC in 2006 to promote international collaboration on insurance across East Asian markets and to enhance insurance literacy by encouraging educational activities throughout the region based on local demand. Source: asiainsurancereview.com

The General Insurance Association of Japan (GIAJ) will continue to promote several initiatives to raise public awareness of the role and importance of insurance as well as the activities of the East Asian Insurance Congress (EAIC), says Mr. Keisuke Niiro, the association's chairman. In a message delivered ahead of the 17th anniversary of the designation of East Asian Insurance Day—which falls on 18 October, the date on which the EAIC was founded in 1962— Mr. Niiro says that the initiatives are: 1. Carrying out public relations activities through the GIAJ website and insurance business publications. 2. Utilizing the network of graduates of the Insurance School (Non-Life) of Japan (ISJ) to celebrate East Asian Insurance Day and to call for participation in the next EAIC. Over its long history of helping insurance professionals throughout East Asia, the ISJ has produced approximately 2,270 graduates since 1972 and is highly regarded by participating regions. East Asian Insurance Day was established in 2006 to promote an understanding of the role and importance of insurance and the activities of the EAIC in East Asian markets. Mr. Niiro says, “We are facing various risks we have never experienced, such as the severe impacts of climate change and the increasing frequency and severity of natural disasters on a global scale. In these times of rapid environmental changes and unpredictability, I believe that the GIAJ needs to demonstrate more than ever the primary function of general insurance, which is to 'respond to natural disasters and risks in society and the economy' and to make efforts to build a resilient society for future generations. “With this sense of mission, I believe that sharing Japan's knowledge and experience in general insurance and disaster prevention/mitigation is meaningful not only from the perspective of encouraging the establishment of a mechanism for compensation for damage but also from the perspective of preventing/mitigating damage itself. “ Specific measures Mr. Niiro adds that in the current fiscal year, the GIAJ will work on the following two points as its contribution to developing general insurance businesses in the Asian region. 1. contribute to the establishment of sound and resilient insurance systems in the Asian region from a medium- to long-term perspective by providing know-how for the introduction of appropriate capital controls, risk management, and insurance underwriting, as well as the establishment of a system for the proper payment of insurance claims. 2. provide a range of know-how related to Japan's general insurance in dealing with natural disaster risks through the ISJ curriculum. The next EAIC Conference will take place in Hong Kong between 24 and 27 September 2024. Source: asiainsurancereview.com

Hosting the EAIC Executive Board meeting again after 16 long years is more exhilarating than I have remembered. The EAIC holds a revered status as one of the most prestigious insurance events in the region, boasting a rich 61-year history. Hong Kong has been honored to organize this signature biennial event twice before, in 1988 and 2008, and we are thrilled to play host once again in September 2024. At the Executive Board meeting held last Friday, we had the opportunity to showcase what we have planned for this grand event and the exceptional experiences we have in store. With invaluable guidance from the Executive Board members and Past Presidents, we have charted a new course for the EAIC. I eagerly anticipate extending a warm welcome to delegates from the 12 EAIC member cities and insurance practitioners from around the globe. Stay tuned for the exciting program and a series of captivating events that await you at the EAIC 2024 Hong Kong Conference! Sally YW Wan, Michael Rellosa, Allan Santos, Sheela Suppiah, Oran Vongsuraphichet, Erickson Mangunsong, Hideaki Amasaki, Somporn Suebthawilkul, Budi Herawan, Antony Lee, Edward Moncreiffe, Alger Fung, Orchis Li, Ellick Tsui, Geoffrey Au, Kate Wong, Phoebe Shing, Winnie Wong, JP, Polly Ho, David Ng, Janet Lee, Franz-Josef Hahn, Clarence Wong, Xiaodong Yu, Wilton Kee, FangBing Lu, Eric Hui Source: linkedin.com

By Herminia S. Jacinto THE insurance industry throughout the Association of Southeast Asian Nations (Asean) earmarks at least a week in the month of October for the celebration of Insurance Consciousness. The Philippines decided to dedicate the whole month of October to give ample time to hold several events that will further enhance the consciousness of insurance. Several activities were lined up by the various associations in the industry, led by the Philippine Insurers and Reinsurers Association (PIRA) and the Philippine Life Insurance Association (PLIA). PIRA chose the theme "Strengthening Disaster Preparedness and Resilience through Insurance." To kick off the month-long celebration, a Mass and opening ceremonies were held at the Makati Sports Club, attended by Insurance Commissioner Reynaldo Regalado and officers, intermediaries and employees from the insurance industry. PLIA held a golf tournament, whereas PIRA held a bowling tournament, which drew around 60 bowlers. Some executives were guests on the radio program of Mr. Errol Dacame of DZRJ, where they had a very lively discussion on the importance of insurance. On Thursday, a Conference on Marine Insurance will be jointly sponsored by PIRA and the International Union of Marine Insurance. Several experts on marine insurance will be flying in to share with us the current developments and issues on marine insurance coverage. PLIA has launched a social media campaign to promote financial stability and security, especially among the young. From the above list of activities, one can see that the events were attended by the insurance men and women and not by the clients or insureds. Maybe there were listeners of the radio program, but perhaps it should have been longer and announced to the public earlier so they could tune in. Radio is the best way of reaching even the farthest places in the country. We should use this more to explain the need for insurance. I believe the best way to convince them to secure their properties or themselves and their families through microinsurance is through insurance education. I saw a news item that mentioned that the insurance penetration in the Philippines is still a low 1.75 percent. Insurance penetration is the contribution of insurance premiums to the GDP of the country. This ratio refers to the life insurance premiums or coverage of our population. And yet our insurance agents or financial advisors, as we call them now, are the best in the region and very well qualified to sell the various insurance products. Advancement in technology has made it possible to sell online, but I think it is still more effective to do it on a person-to-person basis. How about property and casualty insurance, or non-life insurance, as it is more popularly known? There are many types of insurance that are needed to protect property, vehicles, ships, business contracts, events and many more. Agents and other intermediaries have to exert a lot more effort to convince property owners to insure and insure to value their assets. The tendency is to insure only the amount that is covered by a loan, and it is the bank that most likely requires the insurance cover. Walking around our village, I keep on wondering if all the houses there are insured. How about all other houses and buildings and their contents? Are they insured against fire and natural perils like typhoons, floods or earthquakes? The insurance industry has been lobbying against the imposition of more taxes on insurance premiums to make insurance more affordable to the public. Cost is the number one reason why they are either not insured or underinsured. There are many other lines of insurance that a businessman can avail of to protect his property, inventory and employees, but this has to be explained to him very well. Individual insurance agents are more effective in selling on a person-to-person basis. They should continue updating themselves on the current trends and not be intimidated by corporate intermediaries. They still have a big role in convincing small and medium companies to get adequate insurance protection. Insurance is a very interesting, albeit challenging business. There is no end to the knowledge that one must acquire, especially if one wants to be an effective agent or seller of insurance. In addition to training in the technical aspects, agents may need to improve their communication skills. This is what the insurance companies should focus on — to continue educating the insuring public so there will be a positive attitude towards it. Celebrations of insurance consciousness should be geared more toward the buyers and beneficiaries of insurance rather than their own groups. Maybe there should be a regular TV or radio program or a dedicated column in one of the major dailies about the benefits of insurance. Source: manilatimes.net

On its 59th Anniversary, The Premier Life and General Assurance Corporation proved its remarkable demonstration of growth as to production. Over the past three years, the company has set a challenging standard for itself, achieving a consistent upward trend in its Gross Premiums written as provided below: These figures simply show its commitment and dedication in delivering high-quality insurance services, establishing trust, and building strong relationships with clients and business partners. Moreover, Premier's commitment to excellence has earned accreditation among the Top Insurance Brokers namely; Marsh Philippines Inc., PhilPacific Insurance Brokers and Managers Inc., Unicon Insurance Brokers Corp., Macondray Insurance Broker Incorporated, Howden Group of Companies, Trinity Insurance Broker, Banco de Oro Insurance Broker among others. As The Premier Life and General Assurance Corporation is a year away in celebrating its 60th Anniversary, it will continue its commitment to sustained growth, innovation, and unwavering quality services giving full due to its stakeholders, clients, business partners, and the insuring public. To know more about it, kindly visit: Website: premierlifeandgen.com FB page: OfficialPremierInsurance

The Marine Committee, headed by Mr. Derick Narvacan, met with the Insurance Commissioner and his team ahead of the Maritime Conference this October 26, to which Commissioner Regalado agreed to be the event keynote speaker. Left to Right (Mr. Carlos H. Yturzaeta, Resident Agent, Echo Re), (Hon. Reynaldo A. Regalado, IC Commissioner), (Arturo S. Trinidad II, OIC/IC Director II Technical Services Group), (Atty. Alwyn Franz P. Villaruel, Manager Claims Adjudication Division), (Atty. Joanne Frances D.C. Castro, Manager Licensing Division), (Atty. Camille May P. Medina, Legislative Liaison Officer), (Atty. Brian Gale T. Sibuyan, Manager Regulation Enforcement and Prosecution Division), (Mr. Michael F. Rellosa, PIRA Executive Director), (Mr. Elmer Victor B. Felipe, Stronghold Insurance Company Inc.), (Mr. Rogelio J. Concepcion, PIRA General Manager), (Mr. Edmond Geoffrey T. Oliva, Starr International Insurance Philippines), (Mr. Roderick Gil R. Narvacan, Starr International Insurance Philippines), (Mr. Ken Porio, Pioneer Insurance and Surety Corporation), (Mr. Angelito M. Lampa, Paramount Life & General Insurance Corporation).

The disorganized 1/1 renewals at the start of the year have seen the major reinsurers approach the 2024 season with a sense of caution tempered with determination. Asia Insurance Review was there in Monte Carlo to witness round one in the fight to see how pricing might develop in January. By Paul McNamara Les Rendez-vous de September 2022 had appeared to be a great success – until hurricane Ian arrived on 23 September, just nine days after the end of the conference and upended everything. There seemed to be a consensus amongst the big global reinsurers that the disorderly, disorganized renewals at the start of 2023 must not be repeated at the start of 2024. The other core message seemed to be that more rate increases should be expected – although perhaps not at the same level as this year. The big reinsurers seemed both bullish and determined that risk be priced efficiently and fairly. Munich Re Munich Re was the first of the big reinsurers giving the media a sneak peek at its intentions for the upcoming renewal season. The reinsurer shared a series of observations which led to the simple conclusion that there is still a growing need for future investment in reinsurance. Munich Re CEO reinsurance group Thomas Blunck was blunt when he acknowledged that, “The reinsurance environment is still very fragile.” He went on to say, “Inflation will ease but will remain above recent historical averages.” Losses from non-peak perils are on the rise and the reinsurer believes climate change is having an effect. “This is very important for investment for the industry – in things like modelling,” he said. Mr. Blunck had a very singular focus. “For decades, natural catastrophe has been our core business and we have intended to show that it is, over time, also profitable. You might have some hits in a year, but we can digest the volatility. “We can also digest the volatility because the Munich Re group as a whole has more income streams that are quite stable - and that includes agri, life and health reinsurance and also the less volatile specialty business. That also helps with diversification. That is core business for us, and we will grow, but always a diversified way.” For Munich Re member of the board of management Stefan Golling, “Underwriting matters again.” For many years the focus was on other areas of the business – like technology – but now underwriting has come back to the fore. Munich Re’s Nat CAT business shows profitable growth, according to Mr. Golling. “We are ready to offer high capacity – but we need to know what we’re covering,” he said. On the subject of cyber cover, he said “If we don’t understand the accumulation risk, then the cyber market is dead before it even begins.” The picture for cyber war is even more stark. “Nobody in the industry would question that we can write war on a large scale for property, for physical risks. If you have a war or warlike situation, very often this is restricted to a certain geographical area. “No one should question whether we can write cyber war where you don’t have this restriction but where, due to the digital nature of the risk, you can even have a global scenario. If that means that we have to give up business to avoid that uncontrollable exposure, then no doubt we are prepared to give up business,” he said. “These are not only uncertain times from a macroeconomic perspective and there are also many insurance challenges, but also opportunities. And in my view, underwriting matters to master both these challenges and also to leverage these opportunities to take advantage of those opportunities. Underwriting capabilities are key. Underwriting discipline is key.” Mr. Blunck said, “Uncertainties caused by inflation, potential impacts from geopolitical risks, deglobalization and dynamic risks such as climate change and cyber risks are some examples as to why the market environment remains complex … With the right rates and conditions, we’re ready to further increase our capacity.” SCOR SCOR group CEO Thierry Léger kicked off the reinsurer’s media briefing with an acknowledgement that, “The world needs reinsurance more than ever before.” The Morocco earthquake provided a recent example of this. “The earthquake has impacted the population of Marrakesh and the surroundings,” said Mr. Léger. “Our deepest sympathy is with the population there and it really shows how society can be impacted very, very suddenly. And then it is all about getting back on their feet and for this you need help in different ways, but also money. And there will be money from insurers and reinsurers certainly. SCOR will stand by its partners and support the partners in Morocco to help the population there.” SCOR global P&C CEO Jean Paul Conoscente addressed the issue of pricing at the upcoming 1/1 renewals. “Prices need to go up further,” he said. “Yes, we have been profitable – but probably not profitable enough. It takes more than one semester of good results.” He went onto say, “The situation we had before 2023 was not sustainable for reinsurers,” and so insurance costs will have to go up. “Price increases will continue at a rate very similar to last year,” he said. “But capacity will be available at the right price at the right level … We expect price increases across all business lines across all geographies. We will allocate capital to those lines that give us best returns.” In summary, he said, “I see that risk becomes an affordability question – not insurability, but affordability. My hope is that this will lead to more sustainable markets.” SCOR expects reinsurance rate increases to continue across all main lines of business. Economic and claims inflation will be important elements in profitability assessment. Attractive capital returns will depend on rate increases in excess of claims inflation. Hannover Re Hannover Re chairman Jean-Jacques Henchoz opened the reinsurer’s media conference with a dash of reality. “Last year it was hard to find any positives. Since then, the negative pointers have been confirmed by reality,” he said. Coming very shortly after the Morocco earthquake, he said, “We are all with the people of Morocco. This is a tragedy. We want to express our solidarity with the people of Morocco. Our core societal mandate is to help people rebuild after disasters. Each natural disaster is a reminder that the protection gap remains significant. We need to push the boundaries of insurability – and it is a very complex mandate.” He went on to say, “So-called secondary perils are becoming part of the reality of managing our portfolio.” Mr. Henchoz echoed the same warning he gave at last year’s Monte Carlo event. “Rate adequacy must fit our appetite for business. If the terms and conditions don’t meet our requirements, then the alternative is to give the capital back to our shareholders in the form of dividends.” Mr. Henchoz said, “We have a keen focus on underwriting in 2024 on a win-win basis.” And he concluded by saying, “Society needs to come out of the political denial of the price of risk.” Hannover Re member of the executive board Sharon Ooi, talking about inflation in APAC said, “We have seen it rising, though the recent cooling is quite pleasing to see. However, it must be known that the core inflation is currently at significantly higher than the normal averages that we saw at pre-pandemic levels. “What we look to do is to partner with our clients in Asia Pacific because of their growing recent exposures. And this is across all lines of business including specialty. If you look at the mature markets of Japan, Australia and New Zealand, they’ve been really very disciplined in pricing increases as well as changes in terms and conditions. We expect that to be the case still in 2024 for the very large markets of India and China. “Our presence on the ground is actually very positive for us because we can really partner with our clients and look to create parametric products for them, but also look to support their own product development with our capacity. And this sits very nicely alongside the renewable portfolio that we have. “I think, overall, Asia Pacific continues to be a key component of Hannover Re’s strategy and our clients in Asia value consistency very much,” she said. Swiss Re Swiss Re was in no doubt that P&C reinsurance is expected to continue to grow in the year ahead in line with GDP and driven by new risk pools. According to the reinsurer, until 2032 the market should see an annual growth rate of 5.2% to reach $402bn from $243bn in 2022. This growth will be driven by new risk pools catalyzed by digitalization, higher risk awareness and increasing insurance penetration in emerging markets. A case in point is Asia Pacific, where a lot of work still needs to be done by both primary carriers and reinsurers. Swiss Re CEO property and casualty reinsurance Urs Baertschi said, “Cyclone Saola just hit Hong Kong and the Guangdong region and clearly we’re looking at that very carefully, but with a high probability, unfortunately, we’ll find out that the protection gap is very, very large there. “We have a scheme with the Guangdong government, which we reinsure on a parametric basis,” he said. “That’s a very innovative product that we’ve launched there and it’s likely to pay out. We don’t know yet exactly, but it’s one of those examples where parametric insurance is designed to reduce that protection gap. “And we have others in other parts of the world that have a similar structure. So clearly, Asia for us is a necessity to address that protection gap. And sometimes you do it with governments and sometimes with innovative products that are designed to address some of the exposures that are existing there. There’s a lot of work ahead of us and clearly a lot of potential.” There is little doubt that APAC remains very important for the reinsurer. Swiss Re CEO global clients and solutions Moses Ojeisekhoba said, “In terms of the expectations for growth, if you look at the last five years, Asia has powered the growth rate of the entire world. If you take out China and Asia, then you actually end up with almost negative growth everywhere else. “The forecast over the next 10 years, the fastest growth growing region will remain Asia as a consequence of that. The protection gap is still significant, but premiums will also grow materially. It’s a super relevant region. It will power growth. But there is a massive protection gap. There’s a lot of work that has to be done,” he said. The reinsurer’s view is that pricing has reacted to years of heavy losses – and is now returning to more sustainable levels since its low point in 2017. According to Mr. Baertschi, contracts have also been restructured to reduce volatility through moving to higher layers and enforcing exclusions. The pricing reversion is being driven by multiple factors including claims uncertainty, economic and social inflation, social and demographic changes, politics and economics, technology and nature, the (re)insurance market and the underwriting profitability of new business. In common with other major reinsurers, Swiss Re was not keen to be drawn on specifics in terms of what the upcoming 1/1 renewals might look like. Mr. Baertschi said, “It’s still too early to talk about the specifics that we’re seeing in the marketplace. This process is just starting here during Monte Carlo and then will pick up speed over the next few weeks. “In general, our expectation is that what we’ve seen over the last 12 to 18 months around the rebalancing of risk sharing and price adequacy, we expect that to continue. We’ll have to talk about this after we actually do the renewals. What I can say right now is we’re comfortable with our risk appetite.” Swiss Re chief underwriting officer property reinsurance Gianfranco Lot said, “Adequate returns have not been reached yet,” in reference to P&C pricing. In casualty, he said, “Alignment of interests is needed to address the challenging market. What is important it rate adequacy for the business being undertaken.” Source: asiainsurancereview.com

By Michael F. Rellosa The non-life insurance industry, through the collaborative efforts of the Philippine Insurer's and Reinsurer's Association, the Philippine Insurer's Club as well as the Insurance Institute for Asia and the Pacific, will be celebrating Insurance Consciousness Week from October 13 to 26, albeit with activities that go beyond the designated week. This year's theme is "Strengthening Disaster Preparedness and Resilience Through Insurance." To reach the insuring public, they plan several radio program guestings with the opportunity for the audience to phone in their questions related to the chosen theme. The guestings will be at DZRJ AM on Friday, October 13, at 10 a.m., hosted by Errol Decame, and again on Saturday at 11 a.m., this time hosted by Barbie Atienza. PIRA, PIC and IIAP officers will be on hand to help enlighten the insuring public on the role of insurance in disaster preparedness and resiliency. The week will also be celebrated by the offering of the Holy Mass, followed by a fellowship where industry bigwigs led by Insurance Commissioner Rey Regalado will get to announce and talk about their pet projects and initiatives related to the chosen theme and where ties and commitments are renewed over lunch. The celebrations will be capped by an industry-wide Convention on Marine Insurance — a long-neglected class of business. The occasion will be graced by officers of IUMI, or the International Union of Marine Insurance, led by its secretary general Lars Lange who will give a talk on "The Present State of Marine Insurance"; Tetsunosuke Shinya, the vice chairman of Tokio Marine and Nichido Fire Insurance on "The Digitalization of Trade Documents"; Joanne Chan, the APAC underwriting director of ADVA Specialty on "Project Cargo on Changing Risks"; Hiroyuki Ishijima, Tokio Marines Hull and Energy Lead presenting a paper on "Offshore Windfarms as a Source of Renewable Energy"; and government regulators Insurance Commissioner Rey Regalado giving the keynote address and Marina Director Luisito de los Santos to talk about the "Maritime Development Roadmap." Disasters occur not only on land but also on the seas, and the topics promise to shed light on how best to be prepared and resilient in the face of disasters. This is important for the Philippines as we are an archipelagic country with heavy reliance on maritime transport and trade. The need to gather key industry players and experts to discuss topics related to the evolving changes impacting the marine insurance sector within the framework of proper risk assessment, disaster preparedness and resilience is obvious, and the conference will be the perfect opportunity to do so. Expected to attend this conference are marine underwriters, claims men, adjusters, brokers, shipowners, regulators, technology solutions providers, third-party providers and other stakeholders. Hopefully, this spurs the revival of the Marine Class of Business, returning the Philippines to the forefront of marine insurance in the region. As we are on the topic of disaster risk preparedness, it would be good to note that Arise Philippines, the local network of Arise (the private sector alliance for disaster resilient societies) affiliated with the United Nations Office for Disaster Risk Reduction (UNDRR) and of which PIRA is a proud member, will be holding various activities to highlight disaster preparedness and resilience, a topic that spans Industries and Associations. On the horizon is the 10th Top Leaders Forum with the theme "Transforming Victims to Victor: A Multi-Sectoral Approach to Inclusive Resilience." The forum, organized by Arise Global, Arise Philippines, the National Resilience Council and SM Prime Holdings Inc., will be on October 13 (the International Day for Disaster Risk Reduction) from 1 p.m. to 4:30 p.m. at Function Rooms 1 and 2, SMX Convention Center Manila, Mall of Asia Complex, Pasay City, Philippines. The UN Global Assessment Report on Disaster Risk Reduction 2023 underlines that resilience investment is essential to coping with climate change that leads to resource issues and increased risk to people, planet and prosperity. Resilience is truly the catalyst to sustainable development. The event, geared toward Arise regional networks, members of the government, heads of corporations, as well as leaders in the academe and socio-civic sectors, aims to collectively identify strategies for fostering resilience within the society in alignment with the National Economic and Development Authority's Philippine Development Plan 2023-2028. As you can see, disaster preparedness and resiliency is a topic shared by many who have crossed boundaries and united to be part of the solution. The insurance industry is collaborating with like-minded groups to help our society become ready and resilient for disasters that may come our way. Source: manilatimes.net