Insurance companies based in the Philippines are “retooling” themselves amidst the ongoing coronavirus pandemic. Philippine Insurers and Reinsurers Association (PIRA) Executive Director Michael Rellosa, in an online interview, said majority of PIRA’s members have realized that “the only way to survive is to change.” “Majority of PIRA companies are recognizing that working from home is the new normal,” he said. “They have to change their culture, they have to change the mindset.” Januario Aliwalas, the Secretary General of the Association of Insurers and Reinsurers in Developing Countries (AIRDC) conducted the 15-minute interview that touched on what PIRA is doing to help its members cope with the challenges of the pandemic. Rellosa noted that PIRA has been conducting webinars as a way of teaching member companies on how to operate by working from home. PIRA is also connecting these companies to technology vendors who could help them leapfrog to a digital way of doing business. The PIRA Executive Director noted that even the Insurance Commission has recognized these opportunities to change and adapt to more efficient ways of working. “Gone are the days when you meet in a conference room, because it is there where Covid can be transmitted,” he said. For more details, here is the video of the interview:

The Asian Captive Conference will be returning for the fifth consecutive year on 18 August 2022. The conference, which is a collaboration between Labuan International Insurance Association and the Labuan International Business and Financial Centre, is dedicated to the development of self-insurance in the region. This year’s conference themed “Embracing Change and Accelerating Growth: The Way Forward for Self-Insurance” aims to highlight how the risk professionals are embracing the changes in captive insurance and the accelerated growth within the industry to increase their use of self-insurance in response to changing insurance market conditions. The conference will share the best practices and strategies relating to various self-insurance models and outline as well as discuss major trends, issues and events facing the insurance industry, among others. Register now to secure your place at this highly anticipated event on Thursday, 18 August 2022 at Sime Darby Convention Centre, Kuala Lumpur from 9.00am to 5.30pm.

Future underwriters must become skilled statisticians, engineers and technologically literate if insurance is to meet the needs of consumers and businesses according to a new report by the Underwriting New Generation Group (2021) of the Chartered Insurance Institute (CII). The report said the traditional skills required of underwriters were analytical in nature. As a result, sought after candidates mostly had science, technology, engineering and mathematics, business or economic degrees. The group’s report which is based on research that included a survey of members of CII’s Society of Underwriting Professionals plus interviews with chief underwriting officers and HR directors, found that to be successful as an underwriter in the future a more diverse set of digital analytical skills is required. The group’s research has revealed that there is a growing school of thought that advocates splitting of underwriting roles, differentiating between technical and trading or development roles. The report said if the underwriting profession is to keep pace with the changing needs of consumers and businesses then insurers need to make targeted investments to enable the migration to a more future-forward technology stack now that can support a two-speed IT architecture alongside programmes focused on talent acquisition and upskilling. The report said to make the underwriting profession fit for future purpose the following strategy could be adopted: New and existing underwriters should adapt and develop new skills alongside their core underwriting abilities to effectively collaborate with data specialists. The required skillset would include the understanding and use of pricing models, data analytics, portfolio management and data manipulation. Upskilling should be the preferred method when there is enough time to plan, train and execute. External recruitment, specifically for skilled hires, should be considered effective in the short-term when time to execution is critical and the suitable candidate needs to hit the ground running. The group said if adaptation to the changing climate of skillsets is not quick enough, insurers are not only likely to lose their staff but also to see their top and bottom lines impacted. CII Underwriting New Generation Group 2021 member and senior strategy associate of Aon Inpoint Marcus Li said, “Up to 30% of underwriting roles could involve greater interaction with data scientists and the use of quantitative tools. Another 30% of roles could be automated, reducing manual and routine tasks to free up workforce capacity to attend to more value-adding business questions.” CII interim CEO Jonathan Clark said, “Clients and underwriters alike will reap the benefits of data-driven methods of monitoring exposure and mitigating losses, as well as using ever enriched claims data to drive better underwriting decisions that legacy rating methods would measure short against.” Source: asiainsurancereview.com

Cyber attacks are increasingly rapidly, from malware, data theft, distributed denial of service, to ransomware where device and data access are traded for financial gains. Of all the cyber threats, ransomware attacks are very damaging as businesses can be locked out of their own data, if current data backups are not religiously carried out. Check Point Research has highlighted how cyber attacks have become firmly entrenched as a state-level weapon, including the new ransomware method of ‘country extortion’ and state-affiliated hacktivism, and the expansion of ransomware as the number one threat, in their latest report. Besides insight into the evolution of cyber attacks as a state-level weapon complementing actual military conflict, and the elevation of ransomware utilized in nation-state level attacks for financial and social gain, the report – titled ‘Cyber Attack Trends: 2022 Mid-Year Report’ – also delves into the growth of cloud supply chain attacks through new sources of modules in the open-source community. “The war in Ukraine has dominated the headlines in the first half of 2022 and we can only hope that it will be brought to a peaceful conclusion soon,” said Check Point Software VP research Maya Horowitz. “Its impact on the cyber space has been dramatic in both scope and scale, and we have seen huge increases in cyber attacks against organizations in all sectors and all countries this year. Unfortunately, this will only get worse especially with ransomware now being the number one threat to organizations. However, with the right expertise, strategy and cyber security solutions in place, companies are able to prevent attacks from happening.” Top predictions for H2 highlighted in the report include: Ransomware will become a much more fragmented ecosystem – while ransomware groups have become more structured and operate like regular businesses, with set targets to hit, there will be a lesson learned from the Conti ransomware group, whose size and power garnered too much attention, which led to its downfall. More diverse email infection chains – due to the implementation of internet macros being blocked by default in Microsoft office, the more sophisticated malware families will accelerate the development of new infection chains, with different file types that are password protected to prevent detection as sophisticated social engineering attacks increase. Hacktivism will continue to evolve – hacktivist groups will continue to align their attacks with the agenda of their chosen nation state, particularly as the Russia-Ukraine war is still ongoing. Continued attacks on decentralized blockchain networks with expected first attacks in Metaverse – with major incidents relating to blockchain platforms, such as a vulnerability on Rarible marketplace or ApeCoin Airdrop vulnerability, Check Point expects to see continued efforts by hackers to breach and hijack crypto assets. Source: asiainsurancereview.com

The Philippine Insurance Commission (IC) has issued a license to SeaInsure Life Insurance Company, which is owned by SeaInsure PG (SeaPG), a Singaporean insurance company under tech conglomerate Sea Limited that is the holding company for Shopee, an e-retail platform. SeaLife, previously Reliance Surety and Insurance (RSI), was acquired in February 2022 by SeaPG which converted RSI from a non-life insurance company to a life insurance company. As part of the approval on 4 August of the issuance of the license in favour of SeaLife, RSI surrendered its license on 26 July. In March 2022, the IC approved the transfer of the non-life insurance portfolio of RSI to SeaInsure General Insurance (SeaGen). General insurance licence SeaGen was rebranded by SeaPG from its previous corporate name AA Guaranty Assurance (AAGA) when SeaPG acquired the latter in February 2021. SeaPG consequently launched SeaGen as a digital non-life insurance company under a license issued by the IC. In a statement, Commissioner Dennis Funa said, “The entry of Sea Limited, through SeaPG, to the local life and non-life insurance industries is a testament to foreign entities’ confidence in the Philippine insurance regulation.” Meanwhile, Sea Limited guaranteed provision of sufficient capital to SeaLife relative to its compliance with statutory net worth and solvency requirements. SeaPG’s parent company, Sea Limited, is a Singaporean global consumer internet company listed on the New York Stock Exchange with three core businesses across digital entertainment, e-commerce, and digital financial services. Its digital entertainment business, Garena, is a global game developer and publisher. Its e-commerce business, Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan. Source: asiainsurancereview.com

Insurance companies are expected to face huge claims for vehicles damaged by flood as a result of one of the heaviest rain storms in 80 years to hit Seoul. The estimated damage to cars amounts to KRW65.86bn ($50.42m) but is expected to increase as torrential rain, which began on 8 August, is forecast to continue through this week, reported The Korea Herald quoting the General Insurance Association of Korea. Twelve automobile damage insurance companies have received more than 4,791 claims for flooded cars. Around 1,000 of the flooded cars reported were imported cars. “As the rainfall was concentrated in the Gangnam area, home to a high concentration of expensive cars, insurance companies will face a remarkably large amount of compensation claims,” said an executive of a general insurance company. Source: asiainsurancereview.com

Non-life insurers say that they welcome revised rating schedules for earthquake, typhoon and flood risks that will apply to new and renewed insurance policies from 1 November 2022. The rates had previously not been reviewed for the past 30 years. The Insurance Commission requires all non-life insurance companies and intermediaries to adopt the amended schedules, except for risks rated under motor car tariffs. The new tables set out the minimum insurance premium that is based not only in terms of rates but also in terms of construction type and risk zone. No discounts will be allowed on these minimum rates. For example, for flood and typhoon risks, a building or structure is classified as “High grade” if erected with reinforced concrete and steel, or as “Others” if built with wood, masonry or unknown material. The new schedules allow some savings for policyholders. The CAT rates for earthquakes in the initial phase range from 0.047% to 0.10% of the insured sum while those for typhoon and flood risks range from 0.042% to 0.10%. All policies with issue and inception dates earlier than 1 November 2022 shall use the flat catastrophe minimum rate of 0.10% for earthquake risks and 0.05% for typhoon and flood risks. The Philippine Insurers and Reinsurers Association (PIRA) says that the Philippines counts among countries most vulnerable to the risks of disasters. Given this scenario, a review of the outdated catastrophe rates currently in place had to be carried out as these have not been reviewed over the last 30 years, the association said. PIRA also said, “The need to create a more risk-appropriate rating environment would in the end ensure sustainable disaster premium rates to equally support the sustainability of the insurance industry and ensure its presence and capability to service future cat peril claims, especially when it is most needed.” Source: asiainsurancereview.com

Greetings from INSURANCE INSTITUTE FOR ASIA AND THE PACIFIC, INC. (IIAP)! In partnership with the ASEAN Insurance Council (AIC), we would like to invite you to register for the upcoming ASEAN Reinsurance Programme (ARP): Webinar on ASEAN Reinsurance Pricing on 11 July 2022 at 1:00 – 4:00 pm (Phil. Time) Via Zoom IIAP is giving you a chance to learn the ASEAN Reinsurance Pricing process by providing different approaches and methodologies used in real life! The module provides attendees with an insight on how property and liability reinsurance pricing is calculated and applied in real life. So, what are you waiting for? Download the e-Brochure and register now.

By Herminia S. Jacinto INSURANCE is a people business. We need to meet the person we are selling insurance to and explain the benefits of being insured without him getting scared of illness or death! Intermediaries or insurance agents want to discuss and argue with their principals to get better terms and conditions for their clients. We used to look forward to visits from insurance and or reinsurance specialists from all over the globe to exchange business. And, we love to attend conferences and similar events where we can learn and be updated with the latest insurance trends and developments. There is the thrill of shaking our friends' hands and exchanging personal greetings with business colleagues who have become personal friends as well. The pandemic has changed all these traditional ways of doing business. We have learned how to sell insurance online, via several applications now available in the market. We have learned to deliver policies, have them paid and signed electronically. At the flick of a finger and without leaving the comforts of one's home, one can "meet" and "greet" colleagues, clients and other business partners! To be licensed as an insurance agent, one used to have to go to the testing centers like the Insurance Commission (IC) office and the Insurance Institute for Asia and the Pacific (IIAP) to sit down for the examinations. Now, one can take the exams wherever one is using one's own gadget while under the supervision and proctoring of the IC or IIAP using artificial intelligence (AI). But the events that we really missed are the conferences which gather many insurance players and experts and are held in various parts of the world. The Philippine non-life insurance industry holds an insurance summit every year, which is usually very well attended. Last year and this year, the summit had to go virtual. We still got good speakers and participants, but we missed the handshakes, the face-to-face meetings and the camaraderie that comes with events like these. Last Friday, the Philippine Life Insurance Association (PLIA) celebrated its 72nd anniversary with a Mass, and a very nice program, done virtually. We saw and heard the Insurance Commissioner Dennis Funa deliver a short but meaningful video message. The PLIA president Rico Bautista looked so good on screen while delivering his message. There was entertainment provided by a group of talented female singers. And lunch was served! I mean delivered to the various registered participants — another innovation during this time when we cannot get together for the usual lunch. It was a successful virtual event but not quite because we missed greeting one another in person. There are several regional and global conferences that are lined up for the next few months, but I want to talk about the conference that insurance players always look forward to. This is the East Asian Insurance Congress (EAIC) which is held every two years in various Asean/Asian countries. The last one was held in Manila on May 6 to 9, 2018 at the Marriott Hotel and Convention Center. Over a thousand participants, including guests and speakers, attended the conference. Exhibition booths hosted by many insurance players made the event more informative and educational. The closing dinner featured presentations from the various cities, competing with their very unique costumes and dances. The next EAIC was to have been held in Seoul, Korea in October 2020 but due to the prevailing conditions at the time, the organizers canceled the event. For this year's conference, it still was not safe to plan for an in-person event because of the uncertainties we still face. The EAIC is celebrating its Diamond Jubilee this year, having been founded in Tokyo, Japan, in October 1962 by several Japanese executives and our very own Mr. Enrique Sevilla. The second meeting was held in Manila in 1964 which had a lot more participants than in Tokyo. To quote the late Mr. Fukumuro, an actuary from Dai-ichi Mutual Life Insurance Co. and a founder of EAIC: "The EAIC was born in Tokyo, but it was just a symbol. It was in Manila that it attained substance and manhood." If times are better, the Diamond Jubilee of the EAIC would have been a big and happy in-person event for the insurance industry. Mr. Allan Santos, president of the Philippine National Reinsurance Corp. and the current EAIC president, invites everyone to join us in the Virtual EAIC that will be held on Sept. 21 to 22, 2022, (two half-days with the other halves dedicated to networking). Source: manilatimes.net

Financial, digital, business interruption and pandemic concerns top the list of macro risks for mid-sized company leaders. The second edition of QBE Insurance’s mid-sized company risk report discusses the macro and micro risks that most concern mid-sized company executives, whether companies have risk management plans in place to address each of these risks, and their top needs for reducing their risk exposure. According to the report concerns about risks related to climate change have increased significantly in 2022 as compared to 2020 but it still ranks as the least concerning risk according to a new report. When analyzing the specific risks, or micro risks, within the macro concerns, employee-related issues emerge as a common theme. Six of the top 10 micro risks identified by business leaders involve employees: fraud/theft, cybersecurity concerns related to working from home, attracting and retaining talent, accidents and health issues, organization performance, and internal bias/lack of a diversity framework. The report found that COVID is still very much on business leaders’ minds as a top risk, but even after spending 18 months in a global pandemic, fewer than half (46%) of companies surveyed have a mitigation strategy for pandemic-associated risks. Concern about climate change have grown significantly as a macro concern since 2020. The research showed that concern about behavioral change and pressure from eco-friendly stakeholders has increased significantly. However, climate change is at the bottom of list of concerns and is also the least likely to have a mitigation strategy. Two-thirds of mid-sized businesses have unmet needs related to reducing risk exposure, with digital assets protection/coverage (17%) topping the list and risk management expertise provided by industry (15%) coming in a close second, both up significantly from 2020. There was a general rise overall in business interruption concerns in 2021, with fragile supply chain risks and facility shutdowns identified as the top micro risks within this category. Regulatory/legislative risk made the biggest jump of any macro risk, going from eighth in 2020 to sixth in 2021. Changes in regulations topped the list of regulatory/legislative risk micro concerns this year (40%), vaulting to the second highest micro risk overall. Source: asiainsurancereview.com