The 55th edition of Global Insurance Forum, organized by IIS - International Insurance Society and The Institutes took place between 19 June - 21 June in Singapore.
The event, considered one of the most important international forums dedicated to insurance and reinsurance industry, brought together in Singapore more than 400 insurance leaders, as well as government officials, rating agencies, industry leading experts and professional associations. XPRIMM Publications are Media Partner of the Forum.
You can read speakers' main statements below.
DAY 1 MAIN STATEMENTS
CEO, IIS - International Insurance Society
- In Asia, growth and innovation are more active than anywhere in the world
- Our theme this year is "Insurance Reimagined: Global Issues - Asian Insights". We believe that we are experiencing "Insurance 4.0", an epochal change in our industry analogous to, and contemporaneous with the 4th Industrial revolution. We are not merely introducing more new products or adding distribution channels.
- We are re-examining the basic concepts of risks: defining risk in the new world of interconnected devices and social change, and finding better ways to manage it while providing the policyholder with a new and better customer experience.
Managing Director, AM Best
- Insurers agree innovation is critical for future success, according to a survey conducted in August 2018
- The primary reason innovation is important to your organization - Addressing customer needs (22%), gaining a competitive advantage (21%), realizing operational efficiencies (16%)
- Three most important challenges that innovation can help insurers overcome: - system/ process inefficiencies, disruption of business model, underwriting risks
- There are three main structural changes taking place that drive the idea of innovation: Demographic shifts (defined benefits/ pensions disappearing, healthcare becoming more expensive, gig economy becoming more prevalent, collaborative consumption trade), Climate-related trends (weather events increasing in severity, migration to coastal regions, urbanization leading to topological changes), technology (cloud computing, IoT, Big Data, Artificial intelligence / machine learning, blockchain)
- Leadership can be a driver of innovation success or a cause of innovation failure and thus has a direct influence on the other sub-components in the innovation assessment.
President and CEO, The Institutes
- The industry research "What keeps the C-Suite up at night" underlined 37 concerns grouped under five major issue-areas - Economic, political & legal, social & environmental, technological, operational
- The main economic concerns are related to economic development, low investment yields, recession, inflationary environment
- Political and legal concerns - regulation, political instability, new sources of liability, protectionism, taxation, terrorism, threat of nationalization
- Operational business - cybersecurity, innovation, growth, data analytics, competition
- Technology - digitizing customer relationship, updating legacy systems, autonomous vehicles,
- Social and environment - healthcare, aging and changing demographics, natural disasters and climate change
- The biggest concerns (from all the areas) are cybersecurity, economic development, low investment yields, regulation, political instability, innovation, digitization and customer relationship
President and CEO, AXIS
- The political and regulatory burden continue to increase. We spend millions to prepare for Brexit and we have no idea on what climate we will work. At the same time, there are new risks that appear: cyber, climate related.
- This period offers great opportunities for our industry - we are the safety net of the society. We should be proud to be part of the insurance industry. We should not wait for the consumers to be ready for us, we should come and meet their needs.
Chairman, International MMC
- The cyber risk is becoming more and more tangible.
- The AI will have a big effect on jobs. People will want/need to work longer, but we do not know if they will have where, due to the AI impact
- In 10 years, the companies will be digital, which will make the industry more efficient, the operational costs will decrease, and we will have almost just the premium costs.
CEO, PEAK Re
- The changes in Asia are so big and are coming so rapidly, that every day you are learning something new. Insurance in Asia is growing very fast, surpassing the GDP development.
- A fear factor is related to the aging population, including in China. The question is if China will become rich fast enough, before becoming old?
Group Chief Strategy & Corporate Development Officer, AIA Group
- The population is getting older, we have the capacity to keep people alive for more time, at the same time, the population is getting sicker, the general health condition is decreasing. In the next years, we will have old sick people, with no savings. We, as an industry, can create programs to improve the health condition of the population.
CEO, PRUDENTIAL Singapore
- The changing in the demographics and in the population structure are changing the life insurance industry. These are bringing lots of opportunities to the life insurance industry. We need more engagement with the customers.
President & CEO, AIG
- The best of times or the worst of time for the insurance business. We should see it as the best of times, as risk is blooming
- Cyber is a troublesome risk, because it is constantly evolving, it is truly a global peril. There are also state actors, who are in a sort of cyber war. Cyber will consume all the capital we have, this is why ILS should be put at work on this issue.
- We are not everybody's favourite industry and we should look in the mirror and see who we are, to analyse and to see what we can change
DAY 2 MAIN STATEMENTS
Global Insurance Industry Leader, MERCER
- Over two-thirds of executives in insurance believe that over 20% of current jobs will cease to exist in the next years, according to a MERCER survey
- 86% of executives in insurance believe that contingent workers will substantially replace full time employment by 2022 (no company that wants to innovate can not do it with only their own resources)
- World Economic Forum (WEF) anticipates that Artificial Intelligence may deliver up to 58 million new jobs globally. Many jobs in the future will require greater cognitive maturity.
- At the same time, 49% of companies in insurance plan to automate more work this year.
- 73% of the executives anticipate significant disruption in the next 3 years, compared to just 26% in 2018.
Talent Acquisition Lead, AVIVA
- The future of distribution will look different, because of the impact of blockchain. Claims will be solved in minutes. We have to be customer centric, with a organization culture around this, focused on simplicity.
Tan Bin Ru,
CEO, OneConnect Singapore
- The Chinese financial group PING AN has invested in the last years about 1% of its revenues and around 30% of the profit in R&D (over 2 billion USD in 2018 and 7 billion USD in the last years), developing several AI models (for sales force recruiting, claims etc)
- Main fintech company developed by PING AN is One Connect, a leading Fintech SaaS provider of advanced technology-enabled business solutions to small and medium-sized financial institutions. Currently, OneConnect has 101 products in four business disciplines including Digital Banking Solutions, Digital Insurance Solutions, Digital Investment Solutions, and SaaS Cloud Platform, covering sales, product development, risk management, operations and technology.
- On long term, the incumbent insurance companies that will partner with insuretechs will be the winners. For insurance industry, is very difficult to have a Uber or Netflix moment.
- Insurance companies are investing around 3.6% - 3.7% of their profits in IT development, while the banks are spending double. This is the cause that insurance industry has lost 10 - 15 years of technology compared to the banking industry.
- IoT will become a regular thing in our life - this will be the base of a service based economy. The insurance will develop to a pay as you live system
DAY 3 MAIN STATEMENTS
Chairman, IDF - Insurance Development Forum
- We have a responsibility to expand and replicate climate insurance schemes especially in the context of climate change. Insurance has a key role to play in building climate resilience: from cat risk modelling to risk absorption.
Administrator, United Nations Development Programme (UNDP) and IDF Co-Chair
- Development needs insurance and insurance needs development. Resilience is predicated on dealing with unmanaged risk which insurers have dealt with for more than 100 years
Executive Board Member, APRA
- Climate risk is both an environmental problem and an economic one. We pay something now, or we pay a lot more later
WCM Advisory, IDF
- We know that the protection gap is huge, massive, increasing in some market. The problem persist, even after years of effort. The issue we should address is what can the industry do to decrease this.
General Secretary, GENEVA Association
- Generally, we are talking about the protection gap related to climate and catastrophe, but this is also related to health, in emerging countries
- There are five factors that contribute to the protection gap:
- Institutional factors - the legal environment, the trust in the system,
- Social demographic causes, related to financial education
- Economic factors - mainly related to the perception of the cost
- Behaviour causes - the desire for instant gratification, the optimism especially related to low frequency risks,
- Cultural causes - related to religion