Challenges and opportunities of new risks the main topic at SIRC

The challenges and opportunities presented by new risks will be the most featured talking point at the Singapore International Reinsurance Conference (SIRC) this year, according to an online poll of Intelligent Insurer readers in Asia, many of whom are attending the conference.

Some 44 percent of respondents said this would be the main talking point, in their opinion. Many also pointed to the challenges surrounding what is not exactly a new risk but an illustration of how a risk can be more complex than previously imagined: August’s Tianjin explosion and subsequent losses.

“This will be linked to the Tianjin loss and the issues it raises, itself a major talking point,” one said.

The changing regulatory environment will be the next biggest talking point, 33 percent of respondents said. With C-ROSS just around the corner and many other countries moving to risk-based capital regimes, this is hardly surprising, with some reinsurers forecasting opportunities in such changes.

One respondent also stressed that changes taking place in India will be important:

“Most Indian reinsurance treaty and fac business is written out of Singapore. The reinsurance regulations in India are going to change soon, forcing reinsurers to write business within India.

“Foreign reinsurance branches and Lloyd’s are going to be allowed to operate in India soon. This will be a major discussion point at SIRC this year.”

Finally, insurance penetration in markets will remain a big challenge but also a great opportunity for companies in the region, as 22 percent of respondents acknowledged.

“While western markets seek new risks, we just need to get existing products to more people,” one said. Another added: “The market needs to design and price products that the client wants.”