Innovation and talent key in Asian market
As companies grapple with new and emerging complex risks including cyber, terrorism and D&O, this also presents an opportunity for insurers if they can innovate to address clients’ needs, Chin Feng, Hong Kong & Greater China CEO for Allianz, told EAIC Today.
“That means investing in risk consulting for clients to help them understand their exposures better, while mitigating the risk on their portfolio,” he said.
“In order to do that, companies like us are investing in innovation, hiring the right talent and expertise and investing in the right tools to help underwrite the risks, and to provide guidance to our clients on these new emerging risks. Basically you need to invest in your client as the end game—it’s customer-centricity.”
Cyber insurance, product recall and crisis management are all areas of growing opportunity that Allianz is addressing, as well as working closely with its sister company on terrorism and political risk insurance policies. Trade credit insurance to help customers in the current tougher economic environment is another area of focus.
“We also have a very comprehensive international insurance solution policy,” said Feng. “By being able to issue the policies and service the claims via our global network, we can provide solutions for companies with overseas interests.”
In terms of geographical growth opportunities for insurers, Feng sees Hong Kong and Greater China as high on the radar, and increasingly intertwined in terms of business relationships.
“They are going to be so interconnected in the future, and they complement each other because China has the ability to tap funds for overseas expansion—such as the One Belt, One Road initiative. On the other hand, Hong Kong has a more fluid legal system and a lot of the professional services, accountants and lawyers that can help our China offices service these risks.”
Feng also notes China’s infrastructure growth as an area of opportunity, along with Myanmar, where Allianz has just opened an office, encouraged by a more transparent system that is making it easier for foreign companies to expand there.
Vietnam is another area of interest, especially in terms of infrastructure development. Allianz will also be applying for a Beijing licence in the coming year, he added.
Looking to the future, he anticipates that an environment of stagnation—caused by low pricing, excess capacity and consolidation—has created the necessity for companies to have a stronger balance sheet to withstand the current headwinds.
“We have to be able to add a value proposition to the market—we need to differentiate ourselves with value-added services to offset the price wars,” he added. “The challenge is, how do we win and retain clients and remain profitable in a tougher operating environment?
“We are in a strong positon with our capital strength and solvency and our innovation to dive into new areas; that is hopefully going to help us through the tough windstorms ahead.”
