The Asian Perspective
16
The Asian Perspective Franck Baron International SOS
Transcript of The Asian Perspective
The Asian Perspective
Franck Baron
International SOS
Still A Dynamic Economy
1.5%Projected 2012 GDP Eurozone (Eurostat)
1.5%Projected 2012 GDP Eurozone (Eurostat)
7%Projected 2012 GDP
Asia-Pacific (IMF)
7%Projected 2012 GDP
Asia-Pacific (IMF)
39%of the wwde
economy in Asia-Pacific by 2015
39%of the wwde
economy in Asia-Pacific by 2015
The Insurance Market:
The Growth is still there.
The Insurance Market:
turbulences and constraints
• 2011…a turbulent year for the insurance
industry: with a record year for Nat Cat.
• Much of the loss occurred in Asia Pacific.
Economic Losses
USD 435 B.
Economic Losses
USD 435 B.
Insured Losses
USD 107 B.
Insured Losses
USD 107 B.
• Regulators continue to strengthen regulatory requirements.
• Increased Rating agencies’ influence.
• IFRS adoption or alignment in progress.
• Heightened focus on quantification of capital requirements:
Risk Based Capital:
Hong-Kong,Thailand
Risk Based Capital:
Hong-Kong,Thailand
2nd Generation Solvency
Regime: China
2nd Generation Solvency
Regime: China
Solvency II equivalent:
Japan
Solvency II equivalent:
Japan
EU’s transitional solvency equivalence scheme: Australia, Hong-Kong and Singapore
EU’s transitional solvency equivalence scheme: Australia, Hong-Kong and Singapore
2012 Asia-Pacific
Risk Managers Survey
• A panel of 50 Risk-Managers.
• Voting session in Hong-Kong last week.
• 12 themes.
o Position in your company, Reporting and Sponsoring
o Top risks
o External factors and objective for Risk Management
o Coordination with other risk functions
o Risk Management and Internal Audit
o Extent of risk mapping
o Development of risk management activities
o Top issues and priorities regarding the Insurance Market
o Professional Recognition
2%
8%
0%
2%
0%
22%
22%
18%
2%
24%
What is your primary position within
your company?
1. President / Chairman
2. Chief Executive Officer / Managing Director
3. General / Company Secretary
4. Chief Financial Officer
5. Chief Risk Officer
6. Risk Manager
7. Insurance Manager
8. Risk and Insurance Manager
9. Head of Internal Audit
10. Others
16%
2%
24%
20%
4%
22%
6%
0%
0%
4%
To whom does Risk Management
report?
1. Board of Directors / Supervisory Board
2. General / Company Secretary
3. Chief Executive Officer / Managing Director
4. Audit / Risk Committee
5. General Counsel / Head of Legal
6. Chief Financial Officer
7. Chief Operation Officer
8. Head of Treasury
9. Head of Internal Audit
10. No opinion / Don’t know
0%
38%
2%
2%
12%
22%
8%
4%
2%
10%
Identify the top issue about the
insurance market?
1. Solvency II – potential impact on captives
2. Solvency II – potential impact on availability of insurance capacity and cost
3. Collective redress / class action
4. Change in environmental regulations
5. Increase in liability claims
6. CAT NAT Claims
7. Downgrading of insurance players
8. Compliance
9. Terrorism
10. No opinion / Don’t know
4%
20%
11%
4%
33%
2%
11%
2%
9%
4%
Which of the following key area should
insurers prioritize for improvement?
1. Capacity increase
2. Tailor-made policy wording
3. New insurance coverage products
4. Expansion of territorial coverage
5. Efficiency in claims settlement process
6. Consistent compliance approach
7. Design of global programme
8. International reporting (premium and / or claims)
9. Claims benchmarking / analysis
10. Setting up of Service Level Agreement between insurer and client
15%
21%
27%
2%
13%
8%
15%
1. Planning and Execution
2. Market Risks
3. Competition, clients, partnerships
4. Assets (Building / Equipment)
5. Human Resources / Key people
6. Supply chain / business continuity
7. Compliance , legislations, policy
What is your TOP risk?
20%
40%
4%
31%
0%
2%
2%
0%
What are the main external factors
triggering risk management in your
company?1. Clear requirement from shareholders
2. Catastrophic event, major crisis, reaction to unexpected losses
3. Major insurance issues (cost, availability)
4. Legal, regulatory and / or compliance requirements
5. Analysts / rating agencies pressure
6. Corporate social responsibility (CSR)
7. Pressure from markets (e.g. competitors, suppliers etc)
8. No opinion / Don’t know (exclusive answer)
56%
21%
2%
2%
14%
0%
2%
2%
0%
What is the main objective of your
company’s top management for risk
management?
1. Provide a reasonable assurance that major risks are identified, prioritized, managed
2. Align risk appetite and strategy (integrate risk appetite within decision making)
3. Secure investments / acquisitions / projects
4. Enhance external reputation with investors and stakeholders
5. Minimize operational surprises and losses
6. Provide integrated responses for independent risks
7. Rationalize capital and improve predictability of delivering business plans
8. Decrease the cost of risk
9. No opinion / Don’t know (exclusive answer)
13%
69%
13%
4%
1. Full coordination
2. Some coordination
3. Totally working independently (“in silos”)
4. No opinion / Don’t know
In your company, how well are the various risk
functions coordinated?
2%
2%
39%
14%
16%
16%
7%
5%
What type of relationship is there between
risk management and internal audit?
1. Risk Management reports to Internal Audit
2. Internal Audit reports to Risk Management
3. Separate reporting lines
4. A very close relationship (sharing of diagnostics, mutual influence)
5. Coordination and cooperation on the audit plan
6. Coordination and cooperation exist on a limited, informal basis
7. There is no particular relationship
8. No opinion / Don’t know
25%
55%
5%
7%
5%
5%
In terms of being recognized as a
professional risk manager, what do you
think that risk managers should have?
1. Registration to a professional institute (as for lawyers, engineers, accountants)
2. Professional qualifications (ARiMI, Institute of Risk Management etc.)
3. Undergraduate degree in a risk based subject
4. Post-graduate degree in risk based subject
5. Others
6. No opinion / Don’t know
Thank You For Your Attention.
谢谢谢谢谢谢谢谢谢谢谢谢谢谢谢谢
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