Medical malpractice insurance demand to increase over the next five years
Medical malpractice demand by senior healthcare organisations in Singapore is anticipated to rise by 40% in the next five years, according to AIG Asia Pacific Insurance Pte. Ltd. Fuelling this demand is the number of people over 65, which is forecast to double from 440,000 to 900,000 by 2030, as well as growing incidents of chronic and complex diagnoses. As an ageing populace and major health diagnoses continue to grow the healthcare system is being put under increasing pressure, leading to an increased risk of medical errors. The purchase rate for malpractice insurance for general healthcare institutions is forecast to grow by a quarter in the next five years. A survey by AIG uncovered that the big concerns for Singapore healthcare organisations and their patients are below standard patient handovers between caregivers, missing independent double checks and errors in prescriptions. This means more patients are getting looked after by multiple public and private healthcare professionals. This mirrors complaints received by the Singapore Medical Council last year. Out of 141 complaints, professional negligence or incompetence cropped up the most, accounting for 28% of complaints. Dr Aileen Killen, AIG’s head of casualty risk consulting, said that AIG Singapore has witnessed a 300% growth in medical malpractice insurance enquiries last year by both healthcare institutions and professionals, with a significant proportion from senior healthcare organisations.
Branch licence obtained by Asia Capital in South Korea
Asia Capital Reinsurance Group has been given final licence approval from South Korea's financial services commission to open its branch office in Seoul. The branch began operating the same day and is Asia Capitals third. Hans-Peter Gerhardt, ACR Capital Holdings group chief executive said, “Over the last five years, our Korea representative office allowed us to develop an intimate understanding of the local market’s risk landscape. It is now timely that we take the next step in our commitment to the Korean (re)insurance industry with the establishment of our branch office in Seoul. As a reinsurer focused on Asia, our expansion into the South Korean market is the latest step in delivering on our promise of being in Asia for Asia.” The Korea branch office is led by Principal Officer, Jeffrey Lee Jun Soo, who has 28 years of reinsurance experience. Lee has headed Asia Capital Re’s Korean portfolio since joining in 2012. Before that, Lee was general manager of the reinsurance department at Samsung Fire & Marine Insurance.
Lloyd's looks to expand in underinsured parts of Asia
Lloyd's is establishing a new office in India and Malaysia next year, as it looks to widen its footprint in emerging Asia. With insurance penetration still low in the region, emerging Asia provides a source of growth when a slow recovery in Europe and the U.K.'s exit from the European Union means uncertainty a home. Lloyd's Chairman John Nelson said, "We hope to start [the onshore operation] in India at the beginning of next year. The Indian insurance market does not provide a cover or a facility that their businesses need. Domestic insurers need much bigger reinsurance quotes both in terms of scale and in terms of the nature of risk, the new risk being created by the growth of Indian economy. They need more support." The Indian government's change in legislation opened the door to domestic companies from Lloyd's. Earlier in the year, Lloyd's revealed that it had applied for a reinsurance branch in Mumbai, following the Indian authority's publication of the regulations governing the Lloyd's market.
The insurance market of Myanmar will be open to foreign firms in 2017
The government of Myanmar is looking to open the country's new insurance industry to foreign organisations in early 2017 while loosening restrictions for local companies. The decision will be part of a joined up push to bring liberalisation in a sector crucial to economic development. At the same time the government will repeal restrictions on local firms that force them to offer the same products at the same prices. Liberalisation will require the government to make careful discussions about whether to allow 100% foreign-owned insurers or to require foreign investors to form joint ventures with local firms. The government would also have to decide which sectors foreign insurers would be allowed to compete in. Work is underway on a “liberalisation roadmap” that looks to address these issues and is scheduled to be presented to the government in December.
Geneva Association & NTU collaborate in cyber risk insurance research for Singapore
The Geneva Association and Nanyang Technological University, Singapore (NTU) will work together in cyber risk insurance research. Under the deal The Geneva Association will join the oversight board of NTU’s cyber risk management project (CyRiM) and bolster insurance-related research initiatives through its academic experts and global insurance and risk management networks. CyRiM is a new public-private cooperation between industry, academia and government. Launched in May, it looks to bring together an efficient cyber-risk insurance market place by developing cyber loss data and analytics and engaging academics, insurance professionals and IT security experts in research developments. By improving cyber-security understanding, infrastructure and mitigation, it will enable the growth of the cyber risk insurance market by promoting both the demand and supply of insurance coverage. Findings from the research will be distributed between public, private and academic sectors in the form of published papers and a joint Geneva Association-NTU conference.
25 local reinsurance start-ups planned in China
The Chinese insurance regulator CIRC is working through 25 approval applications to set up reinsurance companies in the country. Presently, there are three local reinsurers in mainland China. They are, China Re, PICC Re and Qianhai Re. The last two were given licences by CIRC earlier in the year. Additionally, seven foreign reinsurers have a presence in China. Within the 25 applications for approval are Asia-Pacific Reinsurance, Tianyuan Re and Huayu Re. The Chinese insurance market is expanding rapidly with the government promoting commercial insurance in the health and pension sectors as well as new areas of insurance including NatCAT insurance and environmental pollution liability insurance. In addition, China’s Risk-Orientated Solvency System (C-ROSS) requires that insurers hold more capital for certain risks and this will push higher reinsurance usage.
Jamie Chambers appointed as XL Catlin’s country manager in Hong Kong
XL Catlin revealed the hire of Jamie Chambers as Hong Kong country manager. Chambers will lead XL Catlin’s insurance business and market presence in Hong Kong. The new regional role is in addition to his position as regional product leader in areoapace, for Asia Pacific. Chief Executive, Asia Pacific for XL Catlin’s insurance business, Craig Langham said, “Hong Kong is home to many mid-sized businesses as well as large multinational companies who also chose it as their Asia Pacific base. According to the Hong Kong Census and Statistics Department in 2015, there were more than 3,700 regional headquarters and regional offices locally representing their parent companies located outside Hong Kong. It is also a highly attractive market for foreign direct investment (FDI), according to this year’s UNCTAD World Investment Report, global FDI inflows to Hong Kong amounted to US$175 billion in 2015, behind only the US. Our insurance operations provide these companies as well as the local firms with innovative solutions to their risks so that they can focus on growing their business.”
Sun Life Financial Hong Kong appoint Ritesh Sarda as CIO
Ritesh Sarda has been appointed by Sun Life Financial as CIO in Hong Kong. Sarda will report to Senior Vice President, Enterprise Services Sun Life Asia, Shiney Prasad and CEO of Sun Life Hong Kong, Jason Dehni. Sarda brings over 17-year experience in creating and delivering complex technology transformational programs. He joined Sun Life in 2006 and has played a big part in constructing the large offshore technology delivery service in the Asia Service centres supporting Sun Life’s US, Canada and Asia businesses.
AXA Asia life & savings and distribution appoint Etienne Bouas-Laurent as CEO
Etienne Bouas-Laurent has been appointed CEO of life & savings and distribution of AXA Asia, reporting directly to Regional CEO of AXA Asia, Jean-Louis Laurent Josi and Group CEO, AXA Global Life, Savings & Health Paul Evans. He will be located at the regional head office in Hong Kong. AXA Asia’s target is to become the customer centric insurer in Asia and by 2030 have 100 million customers. Bouas-Laurent will lead the expansion of the life & savings and the distribution business in the region. He will also have responsibility for country management ensuring both general insurance and life & savings entities in Hong Kong, Thailand and Indonesia are working as they should to strengthen the profitable growth of each market. As a member of the regional executive committee, he manages the future planning and performance of the region, pushing the strategic planning for each of the markets. He will have a big say in the overall distribution and management of the region’s cross-selling, up-selling and retention strategy. He will also look after relationships with joint venture partners as well as regulators and government bodies.
Jonathan Rake appointed as head of South East Asia by Swiss Re Corporate Solutions
Jonathan Rake has been appointed by Swiss Re Corporate Solutions to the role of head of south east Asia. Located in Singapore, Rake will take charge of accelerating business growth in the region. He will report directly to Chief Executive Officer, Fred Kleiterp, Asia-Pacific at Swiss Re Corporate Solutions. Rake offers over 14 years of insurance knowledge and has experience working in Europe and Asia, including senior management positions in Hong Kong and Singapore. Kleiterp shared, "Jonathan is well-known and respected in the Asian marketplace and brings extensive industry knowledge and a strong proven track record of driving growth. These qualities will further strengthen our reputation in the region and only enhance our relationship with broking partners and corporate clients. Jonathan is the ideal candidate to lead the South East Asia team and I'm delighted to welcome him to the organisation."
Aspen Re name Philip Hough as managing director for Asia Pacific
Aspen Insurance Holdings Ltd. unveiled the appointment of Philip Hough as managing director for Asia Pacific. Hough will be located in Singapore and will report to Thomas Lillelund, Aspen Re CEO. Hough joined Aspen in November 2005 as a senior property reinsurance treaty underwriter. He has had two previous promotions; in 2007 he was appointed head of Aspen’s European property treaty business and in 2015 he was given additional responsibility as the global product head for the international property pro rata and per risk treaty portfolio. Before joining Aspen, Hough was a vice president at Transatlantic Re in Paris and began his career as a facultative underwriter at Mercantile and General Reinsurance Co. in 1992 in London.
Lloyd's name Angela Kelly as Singapore country manager
Lloyd's revealed the hire of Angela Kelly as Lloyd's country manager, Singapore. This role complements Lloyd's 2025 growth priorities in the region and Kelly will be responsible for the activities of the strong market development and regulatory and compliance teams who support and oversee the Lloyd’s marketplace in Singapore. Kelly joined Lloyd’s regional offices in CapitaGreen, Singapore, previously serving at Swiss Re where she was chief executive officer of Swiss Re International SE Singapore branch and head of casualty for Swiss Re Corporate Solutions, Asia Pacific.