The upper ocean surface heating in the equatorial Pacific - an important oceanographic region in Earth's climate system - is likely to make the east Asian monsoon season wetter according to a new study by Rutgers University. The study Recent frontiers of climate changes in East Asia at global warming of 1.5°C and 2°C published in a recent issue of nature.com said the recent increases in ocean heat content - where energy is absorbed by the waters - have been implicated in the intensification of tropical storms that draw their energy from the surface of the ocean. The link between ocean heating and rainfall on land is less clear. Rutgers' School of Environmental and Biological Sciences marine and coastal sciences professor Yair Rosenthal said, "Our study suggests variations in ocean thermal structure affect the delivery of moisture, latent heat, and what happens when they arrive on land." Tongji University China professor of ocean studies and lead author of the study Zhimin Jian found that over the past 360,000 years, increases in monsoonal rain in eastern China have been correlated with increases in the heat content of the Indo-Pacific Warm Pool - a region where sea surface temperatures remain above 27 degree Celsius year-round – could be due to enhanced transport of moisture and latent heat absorbed in the water vapour from the ocean to the continent. According to the study, the changes in upper ocean heat content follow shifts in the Earth's orbit that occur about every 23,000 years and change the distribution of incoming solar radiation at each latitude. Source: asiainsurancereview.com

Financial and cyber crimes such as money laundering, ransomware, phishing and online scams are ranked either high or very high threats by over 60% of the respondents participating in a new study conducted by international police organization INTERPOL. The study published in the inaugural edition of INTERPOL’s Global Crime Trend Report released in October 2022 leverages data from the organization's 195-country membership to map out current and emerging threats worldwide. More than 70% of the respondents expect crimes such as ransomware and phishing attacks to increase or significantly increase in the next three to five years. The report reveals that crime areas converge in complex and mutually reinforcing ways and understanding the complexity of these issues is crucial to inform collective decision-making by police worldwide. Respondents ranked money laundering as the number one crime threat, with 67% ranking it ‘high’ or ‘very high’ in their list. Ransomware at 66% was the second highest-ranking threat and the crime threat expected to increase the most (72%). Breaking down the results by five world regions, the INTERPOL report shows that while some crime threats rank highly across all geographical zones, others differ according to regional and national factors. Financial crime was considered the top crime threat in the APAC region, specifically financial fraud and money laundering alongside the trafficking of synthetic drugs. Cyber threats such as ransomware and phishing attacks, business email compromise, identity theft and online extortion are expected to increase or significantly increase in the future according to the law enforcement respondents from the APAC region. INTERPOL secretary general Jürgen Stock said, “Understanding and pre-empting crime trends is an absolute bedrock of policing, and our new report offers an unparalleled picture of the global crime landscape as seen by police officers around the world.” According to the report financial crimes and cyber crimes are invariably linked, as a significant amount of financial fraud takes place through digital technologies (making it ‘cyber-enabled’) and cyber criminals also depend on financial fraud to launder their illicit gains. The report reveals that while ‘cyber crime-as-a-service’ is a well-known criminal concept, the pandemic has also hastened the emergence of ‘financial crime-as-a-service,’ including digital money laundering tools that can prove critical for criminals seeking to cash out. Source: asiainsurancereview.com

The webinar will include a presentation of the research study findings and a panel discussion. The research will be presented by Maria Angela Zafra, DBA (Adjunct Faculty, Ateneo de Davao University) and Wilfred S. Manuela, PhD (Associate Professor, Asian Institute of Management). The panel includes: Agnes de Jesus, Chief Sustainability Officer of First Philippine Holdings Corporation; Raymund Vincent Aaron, the Banana Chief of Villa Socorro Farm; Ryan Joseph Larobis, Team Head of BDO Unibank Commercial Banking Group; and Bernadette Victorio, Regional Program Lead of Fair Finance Asia. The discussion will be moderated by Felipe O. Calderon, CPA, CMA, PhD, Executive Director of the JBF Center.

Melting glaciers and prolific monsoonal rain resulted in historic flooding that devastated a large part of Pakistan in 3Q2022. The event resulted in nearly 1,700 fatalities, with around 20% of the deaths related to indirect causes such as diseases and malnutrition, says Aon, a global professional services firm that provides a wide range of risk, reinsurance, retirement, and health solutions. In a report titled "Q3 Global Catastrophe Recap October 2022" released last week, Aon says that while actual flood damages and accompanying insured losses were not expected to exceed those seen in China or Australia this year, the overall impact to the Pakistani economy is likely substantial and far-reaching Glacier Melting Pakistan hosts the highest number of glaciers in the world outside of the polar regions. Long-term exposure to high temperatures can result in excessive melting and associated hazards. Between June and September 2022, there were at least 75 glacial lake outburst floods (GLOF) and 90 flash flood incidents arising from heavy glacier melting in Gilgit-Baltistan and Khyber Pakhtunkhwa, northern Pakistan. Glacier melting raises the river stage in the Gilgit river, which connects with the Indus River downstream. The UN set up dozens of early warning systems in the northern valley and is planning to map glaciers in northern Pakistan within the next eighteen months to quantify the melting layers. Record-breaking rainfall But the main driver behind the catastrophic floods in the southern part of Pakistan was heavy monsoonal rainfall. The country observed its wettest July (+180%) and wettest August (+243%) since 1961, with the southern provinces, Balochistan and Sindh, showing monthly anomalies of +450% and +307% in July, and +590% and +726% in August. Multiple spells of well-pronounced lows barrelled the southern region as the monsoon axis was located south of its normal position this year. The number of broken daily and monthly rainfall records was very significant, particularly in August. Overall, the country experienced seven widespread rainfall events between July and August. By the end of Q3, seasonal floods in Pakistan had caused nearly 1,700 deaths and 13,000 injuries. A significant number of the fatalities in the last few weeks of September came from acute malnutrition or waterborne diseases such as typhoid, diarrhea, and malaria. Outlook Affected by both melting glaciers in the north and warming oceans in the south, Pakistan is one of the most vulnerable countries exposed to the financial costs and physical risks of climate change. Modelling study by Pakistan Meteorological Department (PMD) projected the number of consecutive wet days in the southern part of the country to increase in future with the rise in sea surface temperatures in the Arabian Sea. In addition, monsoon currents might be laden with more moisture under a warming atmosphere. With the livelihood of many still affected by the recent flood, Pakistan will need a lot of resources and time to rebuild, while likely facing more pronounced natural hazard events in the future. Smart rebuilding efforts need to be undertaken to mitigate against the next deadly waves of natural hazard occurrences. Source: asiainsurancereview.com

The emerging Asian middle class shows clear signs of optimism despite economic headwinds. Health, well-being, and financial wealth are the most important priorities in this consumer segment, according to the findings of a consumer survey released by Peak Reinsurance Company (Peak Re), a Hong Kong-based global reinsurer. With growing economic prosperity, these customers will require more risk mitigation and protection solutions, creating significant opportunities for the re/insurance sector, says the survey report that was released last week on the occasion of Peak Re's upcoming 10th anniversary. In collaboration with Intuit Research, Peak Re commissioned a regional survey in the second quarter of 2022 to identify the unique characteristics of the emerging Asian middle class. Understanding the behaviour and preferences of the emerging Asian middle class is critical to successfully tapping into this important insurance market segment. These consumers need more insurance coverage as they begin to accumulate wealth and make plans for their retirement and their children's education. Mr. Franz Josef Hahn, CEO of Peak Re, said, "Emerging Asia's share of world GDP has increased significantly from 5% in 1990 to an estimated 26% in 2022, according to the IMF. Despite cyclical economic challenges, emerging Asia is expected to remain the fastest-growing region in the world over the next decade. "With higher income levels and the rise of the middle class, there are significant opportunities for insurers and reinsurers to offer risk mitigation and protection solutions." Optimism over financial well-being and social mobility According to the survey, the emerging Asian middle class is clearly more optimistic about its financial well-being, social mobility and the success of its children, compared to its counterparts in mature Asia. Emerging Asia’s middle class is also more health-conscious and inclined to take health-promoting measures, whilst being aware of the heavy financial burden of medical expenses. In terms of personal finances, the survey shows middle-class people in emerging Asia are also more confident about their financial literacy and more disciplined about spending and saving. This optimism is reflected in the fact that more of them have ambitions to become entrepreneurs or expect employers to improve work-life balance. Seven emerging Asian markets are included in this survey, namely Malaysia, Indonesia, Thailand, Vietnam, Philippines, China and India. Three mature Asian markets are also included for comparative purposes: South Korea, Hong Kong and Japan. Source: asiainsurancereview.com

Malayan Insurance, the biggest non-life insurer in the Philippines, has a five-year average combined ratio and return-on-equity ratio of 101.4% and 4.1% (2017-2021), respectively, notes AM Best. The international credit rating agency views Malayan’s operating performance as adequate. Overall underwriting performance has been hampered by volatility and unfavourable loss experience from its fire business in recent years, driven by catastrophe and large loss events. Nevertheless, the company continues to report good technical results for its motor business, which helps to offset the unfavourable performance of its fire business. Investment income, which is composed of interest and dividend income, continues to be the principal contributor to Malayan’s overall earnings. Ratings affirmed AM Best has affirmed Malayan's Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good). The outlook of these credit ratings is 'Stable'. These ratings reflect Malayan’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral impact from the company’s ultimate ownership by Pan Malayan Management and Investment Corp. Malayan’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). Notwithstanding this, the company’s capital adequacy remains sensitive to catastrophe-stressed scenarios emanating from flood, typhoon and earthquake events in the Philippines. The company’s high reliance on reinsurance to enable the underwriting of catastrophe and large property risks remains a partially offsetting factor, along with its exposure to counterparties that are non-rated on an international financial strength rating scale. Malayan’s balance sheet strength also remains exposed to notable market and concentration risk arising from its sizeable equity investments. However, the company has made progress in reducing these risks through ongoing reductions in its equity investment exposure. Business profile The 'Neutral' business profile assessment reflects the company’s position as the largest non-life insurance company in the Philippines based on gross premium written in 2021. Malayan also benefits from its affiliation with the Yuchengco Group of Companies, a large conglomerate in the Philippines, in terms of branding and distribution. Malayan demonstrates strong commitment toward digital transformation, which is an important pillar of the company’s long-term strategy for retail business development. Source: asiainsurancereview.com

Speaker: Mr. Sandy Reyes

A new analysis shows that globally four out of five cities (80%) face significant climate hazards, from extreme heat to floods, in 2022. A quarter of the global cities (25%) face a high-risk climate hazard that is expected to be more intense and frequent by 2025. The analysis released by CDP Global said cities should put people at the heart of their climate action, from assessment to implementation, as almost a third of them say climate hazards threaten nearly three quarters of their inhabitants. The analysis in the report Protecting People and the Planet is based on responses of 998 cities from across the globe to CDP-ICLEI Track in 2022. It shows that cities taking at least one people-centred climate action - where the needs and experiences of people, especially vulnerable groups, are examined and considered from the assessment to implementation stages of action - are realizing multiple additional benefits, on top of reducing emissions. In a year that has seen major climate disasters on a monthly basis, the analysis shows the extent of the vulnerabilities facing cities from the increasing severity of climate change’s impacts. Four in five cities (80%) report facing significant climate hazards in 2022 - such as extreme heat (46%), heavy rainfall (36%), drought (35%) and urban flooding (33%) - while for nearly a third of cities (28%), these hazards threaten the vast majority, at least 70%, of their populations. Close to two thirds of cities (62%) expect these hazards to be more intense in future while over half (52%) anticipate them being more frequent. Moreover, a quarter (25%) are facing a high-risk hazard, such as extreme heat, that they expect to be both more intense and frequent by 2025. With people living in cities at risk from the impacts of climate change, from floods to heatwaves, cities have identified those most exposed to climate hazards. The elderly (64% of cities), low-income households (64%), children (52%) and marginalized and minority communities (47%) are reported as the most vulnerable groups. The resources city inhabitants depend on each day are also threatened by climate change, with water supply (46% of cities), agriculture (43%) and waste management (41%) considered at greatest risk. CDP Global interim global director Maia Kutner said, “From the deadliest floods in Pakistan’s history to the worst drought across the continent of Europe in five centuries, 2022 has been another devastating year for climate change events. “Putting people at the heart of climate action, from planning to implementation, improves lives. It unlocks social, economic and environmental benefits, enhances equity and inclusion, and ensures a just transition to a low-carbon economy,” said Ms. Kutner. The report also examines the factors which support and hinder cities from adapting to climate change. Over half of cities (57%) report factors challenging their ability to take climate action, with the most common being budgetary capacity (25%). Source: asiainsurancereview.com

The 58th anniversary of Premier Insurance signifies its rise to greater heights. It expanded its business by applying for a composite license before the Insurance Commission, which is already on process. In preparation for such endeavor, it amended its name to The Premier Life and General Assurance Corporation and likewise amended its primary purpose to include the life insurance business, which has been approved by the Securities and Exchange Commission on 07 June 2022. Premier's mantra has been "Like the hands that protect" and "Ang Segurong may Puso". Now, as we embark on a new expanded mission of securing the future of the community, Premier will live by "YOUR FUTURE, WE SECURE." Visit: main.thepremier.com.ph to know more about it.

The current economic turmoil is leading to widespread underinsurance for businesses in the UK according to a new research. The new RSA Insurance publication Broker Pulse reveals that nine in 10 brokers (93%) believe that underinsurance is a major threat to the UK businesses. More than half of the brokers feel that clients change their policies as a result of the current energy crisis. The inaugural edition of the publication features a representative survey of more than 200 brokers from across the UK and shines a light on the risk of underinsurance for businesses in an era of inflationary pressures and increasing costs across the board. The research also revealed that 60% of the UK brokers are hearing their clients citing economic uncertainty as a common concern, with almost half (47%) seeing changes or cancellations made to insurance cover as a result. The energy crisis challenge is a particular concern for these businesses, as over half (57%) of brokers are seeing policies altered as a response to rising energy costs. Brokers also highlighted high wage demands (40.78%) as issues for the businesses they cover. RSA managing director commercial claims Lee Mooney said, “The increase in businesses changing their policies reflects the anxiety that the UK organizations are feeling. With many not sure if they will be able to survive rising costs, they are taking any means necessary to make ends meet. In some cases, this means cancellation of, or failure to take out, necessary insurance policies - leading to insufficient cover for their businesses. “This is a high-risk strategy - underinsurance might be a short-term fix to a cost crunch but could lead to serious consequences when dealing with unexpected business disruption. It’s an area where insurers and brokers need to continue collaborating, providing solutions, education and awareness to help customers facing a future that is increasingly uncertain,” said Mr. Mooney. In attempts to cut costs, personal accident insurance is the most likely form of cover to be jettisoned by businesses. Nearly a third (30%) of brokers see this as the most reduced or altered. Legal protection insurance, product liability insurance and self-employed and sole trader insurance all following close behind at 25%. With many businesses seeing new energy quotes up to 10 times their current rates. Seven in 10 (71%) brokers, however, feel that the insurance industry is doing enough to make sure that businesses are getting the best policy for the best price. Also, the research found that just one in five (21%) of those polled noted public health is a challenge pre-occupying their clients suggesting the fading impact of the pandemic. Source: asiainsurancereview.com