Asia-Pacific will deliver strong growth for insurers who must lead charge on climate and cyber: Singapore Minister for Finance
The global insurance industry can step up business in Asia to close a hefty gap in P&C penetration and address rising threats from climate and cyber risks, Singapore’s Minister for Finance and deputy chairman of the Monetary Authority of Singapore (MAS) Lawrence Wong told delegates in opening remarks to the Singapore International Reinsurance Conference (SIRC).
Singapore will do its part to fuel growth, including support for insurance-linked securities (ILS) in the alternative financing area.
“As Asia grows, more lives, wealth and assets will need protection,” Wong told the online event. Asia is poised for a wave of insurance growth as the continent “continues to lead globally in terms of economic growth, the rise of the middle class, wealth creation and urbanisation.”
Wong reported Asian insurance market growth at nearly twice the rate of growth globally and cited an Allianz study suggesting 8 percent average annual growth to 2030.
With Asia leading global economic growth and already suffering property and casualty coverage levels which are “disproportionate to the level of assets at risk,” the required increase in penetration rates throughout Asia “will take time.”
Insurers are especially invited to lead the way in addressing new “existential” risks stemming from climate change and cyber, in addition putting solutions into place for the types of fragilities exposed by the COVID-19 pandemic.
“The future of climate change will be won or lost in Asia,” Wong told delegates, citing heightened exposure to weather-induced natural catastrophes versus other global regions and a rising contribution to global emissions of greenhouse gases.
