KUALA LUMPUR, Dec 5 (Bernama) -- Malaysian Reinsurance Bhd (Malaysian Re) has launched Asean Insurance Pulse 2023, the seventh edition of its regional Thought Leadership publication, which focused on inflation and its impact on Asean insurers.
Malaysian Re president and chief executive officer Ahmad Noor Azhari Abdul Manaf said the Asean region, which consists partly of emerging and partly of mature markets, is no stranger to inflation.
Nonetheless, he said that the complexity, speed, and altitude to which inflation surged within just a few months present a novelty to most insurance industry players.
“As Malaysian Re, we were thus interested to know how the Asean insurers dealt with this phenomenon, where they saw key challenges, how well they were prepared and what they heard from their policyholders in terms of their needs,” he said in a statement today.
The Asean Insurance Pulse 2023 was launched by Vietnam Insurance Supervisory Authority Commissioner Ngo Viet Trung and witnessed by Asean Insurance Council chairman Shahrildin Jaya, Asean Insurance Councilsecretary-general Christian Wanandi, and Ahmad Noor Azhari during the 5th Asean Insurance Summit in Ha Long, Vietnam.
Malaysian Re said that as stated in the key findings of Asean Insurance Pulse 2023, the surge in inflation shaped much of 2022, resulting in a tightening of monetary policy and, in turn, capital market volatility and depreciation of currencies in some emerging markets.
The report, based on 24 structured interviews with executives representing regional and international (re)insurance companies, intermediaries, policymakers and trade associations, also stated that inflation did not affect all Asean insurers equally across the Asean markets and varied greatly according to business models.
“Those with a high share of personal lines such as motor, property and medical insurance were the most affected than those focused on commercial lines or in reinsurance,” it said.
Ahmad Noor Azhari said inflation did not catch the region´s insurers off guard as they had already started to rebound before the end of the pandemic and, in some Asean markets, had been part of their reality for quite some time.
He said insurers had risk management measures in place to stress-test the impact of inflation on their book and reserves, but the major concern was with policyholders, namely consumers, who often underestimate the risk of underinsurance.
“We hope that this year’s report will be a valuable reference as our qualitative interviews and familiarity with the industry and its drivers have allowed us to identify how the Asean insurers dealt with this phenomenon, where they saw key challenges and how well they were prepared,” he added.
For more information on the findings of Asean Insurance Pulse 2023, download a copy at www.malaysian-re.com.my.
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