Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • April 2019
04

Asian insurance market 'unsustainable' amid rising large-scale risks

Open-access content 1st April 2019

A rising number of large and complex risks have rendered the Asian commercial insurance market unsustainable, Willis Towers Watson (WLTW) has warned.

2


The firm said that disruptive technologies, geopolitical risks and demographic changes necessitate a new data and analytics-driven approach to risk mitigation and management.

This comes as a number of insurers withdraw from the region amid tighter scrutiny of underwriting practices, with many Asian countries now seeing hardening markets.

"A different risk management approach is needed," WLTW head of Asia, Scott Burnett, said. "Companies need to know the strategy they have is exactly right for their business. 

"With new and emerging risks on the rise, they need to adopt a data-driven and actuarial approach to support all aspects of their procurement process to yield better outcomes."

The WLTW research highlighted how a large number of natural catastrophes in Asia last year led to significant attrition losses and continued downward pressure on insurance rates.

These sustained losses, coupled with an increasingly complex global and economic backdrop, meant that most international insurers had to re-engineer their portfolios.

The researchers said there is now an "urgent" need for insurance buyers to go beyond traditional brokerage services, including assessment, transfer, placement, and claims.

This would involve risk engineering at all stages of the engagement, with data and analytics used to inform conversations with companies to help them look beyond current risks.

WLTW warned that cyber exposure has expanded beyond data breaches and must now be seen in the context of supply chain disruption, while liability exposure continues to grow.

"Too often, we hear clients struggle to quantify the financial impact and likelihood of risks to their business," Burnett said.

"It is therefore important for companies to understand, prevent, protect and then respond with the right insurance and risk strategy for their businesses." 


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our April 2019 issue of The Actuary.
Click here to view this issue
Filed in:
04
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Make the switch from Pensions > Life Insurance

Manchester
Excellent Salary + Bonus (study support if required)
Reference
118732

Nearly/Newly Qualified Actuary – With Profits Reporting & Valuation

Scotland
£Upon Application
Reference
118763

Director of Investment Risk

London (Central)
+ comprehensive benefits
Reference
118783
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200