INSURANCE RANKINGS sustainability. Manulife launched its own Impact Agenda in June last year, which outlined its key social and environmental commitments, in areas where it can have the greatest ability to affect change. Businesses also saw the value of personalisation and for Ho Lee Yen, CEO of HSBC Life Singapore, this will increase in 2023. “This is the next evolution of “being where our customers are.” Organisations that are able to effectively leverage data and analytics to personalise their engagement and solutions will be able to capture mind and market share. In the insurance business, the level of personalisation we can achieve can make a difference in how effectively we can support our customers in reaching their goals in the various aspects of wellbeing,” the HSBC Life Singapore CEO said. Trends for life insurers Manogna Vangari, Insurance Analyst at GlobalData said that in 2022 some insurers increased their investments in insurtech to improve operational efficiencies and their overall profitability. “For example, AIA implemented plans to shift 90% of its operations to the cloud by the end of 2022. Prudential Singapore is experimenting with machine learning-based solutions to automate claims and reduce fraudulent practices,” Vangari said. She advised that insurers, especially life insurers, should focus on insurtech developments to address demographic challenges and provide personalised insurance policies to meet the changing financial demands of customers by offering more flexible insurance coverages. “In 2023 and beyond, geopolitical tensions, cyber risks, supply chain disruptions caused by Russia and Ukraine conflict, sustainability, and ILS market development will become increasingly pertinent issues and key focus areas for the non-life insurers,” Vangari said. Lim Siang Thnia, Deloitte Southeast Asia Insurance Sector Leader said insurers will face a volatile geopolitical environment in the current year. “This will likely affect the investment outlook, particularly for life insurers, consumer behaviour
and also employee expectations. Hence, insurers need to be agile and adaptable to manage emerging challenges. Some of the value of the prior investments will likely be demonstrated (or not) in the coming year. In addition, adjusting to what is likely to be a hybrid working environment and the challenges it poses, whilst remaining competitive and customer-focused with an eye on the bottom line will be a balancing act that insurers need to manage.” the Deloitte expert said. Targets for general insurers Ho Kai Weng, Chief Executive of the General Insurance Association of Singapore (GIA) said they are several trends last year that may remain in 2023. One of them is how workplace and manpower trends such as hybrid and remote working will remain. “Insurers must adapt to the office of the future. A strategic approach to training and upskilling talent will be critical to ensure that insurers remain competitive in the global talent war,” Kai Weng said. In Singapore, most senior executives have prioritised employee engagement and retention strategies over consumer behaviour or geopolitical concern. However, only 30% are prepared to respond to a dearth of talent and skills availability, a study by Russell Reynolds Associates revealed. “The tech layoffs of late 2022 may create new opportunities for insurers to grow their ranks, something previously challenging given the shortage of tech talents. Insurers with particular requirements for new skills in technology can leverage the
Ho Lee Yen
Manogna Vangari
Lim Siang Thnia
Ho Kai Weng
availability of skilled tech talent to support their digital transformation roadmaps,” Kai Weng advised. General insurers should also expend efforts in providing cyber insurance to small and medium enterprises (SMEs). A report by QBE revealed that 42% of SMEs in Singapore have indicated that they conduct seven to eight processes online but lack basic protection for these technologies. 21% of SMEs have also said that they have been ‘hacked into’ at some stage back in 2019. “This is worrying given that SMEs account for 99% of businesses in Singapore and employ more than 70% of the workforce. Any largescale cyberattack would potentially mean widespread losses. This, hence, underscores the urgency for insurers to step up efforts and educate businesses on the importance of cyber insurance,” Kai Weng said. Kai Weng added that since the pandemic, greater awareness towards protection has been prevalent amongst consumers. “At the back of an uncertain macroeconomic environment, sustained inflationary pressures, increasing sophistication of cyber threats, and climate change, there will no doubt be a new wave of challenges posed for insurers. Against this volatile landscape, there is a need to adjust operations accordingly to cope with the unknown as this could mean large and unexpected liabilities and the consequent increase in claims and costs. With this trend, therein exists an opportunity for insurers to innovate and deliver products with strong value propositions that meet these,” Kai Weng said.
In 2023 and beyond, geopolitical tensions, cyber risks, supply chain disruptions, and sustainability will become key focus areas for non-life insurers
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