The East Asian Insurance Congress (EAIC) 2022--Diamond Jubilee kicked off Wednesday, marking the return of the organization's conference that had been postponed in 2020 due to COVID-19.
This year's theme is "Creating an industry-wide, comprehensive vision." The curriculum has been created to address the properties of a diamond – cut, color, carat, and clarity – which represent the numerous factors that the business must take into account.
In his opening remarks during the virtual conference, Allan Santos, president of the EAIC, reaffirmed the purpose of the Congress as advancing and fostering international collaboration among insurance practitioners in the region. In addition to the Diamond Jubilee, this year's EAIC also coincides with a number of drastic changes that have impacted the sector.
"To name a few, climate change, COVID-19, and digitalization. Even today, we continue to witness transformations and upheavals that affect us and the general public in the insurance industry, he said. Our industry has endured innumerable obstacles throughout the years. Mr. Santos stated, "I am confident that we will continue to face the challenges of the day with resiliency and solidarity."
Aware of the legacy of cooperation that the Congress began when the organization was founded in 1962, Mr. Santos stated that EAIC must continue to play an important role in providing a forum for industry players to engage in constructive exchanges and dialogue in order to comprehend the challenges facing the industry and to discuss potential solutions.
He stated, "We will investigate how the insurance sector is likely to evolve in the next years, particularly in light of the past two terrible years caused by a global pandemic." "We will examine the consumer mindset, competition, technology, climate concerns, and the ongoing conflict between Russia and Ukraine, all of which are crucial areas that (re)insurers must address in order to remain relevant and strong, prepared to meet present and future headwinds."
Creating a future that is viable
Mitsui Sumitomo Insurance honorary advisor Takeo Inokuchi, the conference's keynote speaker, noted that the number of countries or territories participating in the EAIC has increased to 23, highlighting the growing importance and size of the Congress, and how it contributes to the penetration and spread of insurance in the region.
During his keynote lecture, he stated, "The solid growth of insurance is important to accomplishing the United Nations Sustainable Development Goals or SDGs, which have become global goals focused toward a sustainable society." "I am specifically referring to Goal One, "No Poverty," Goal Three, "Good Health and Well-Being," Goal Nine, "Industry, Innovation, and Infrastructure," and Goal Eleven, "Sustainable Cities and Communities."
In light of these objectives, he asserted that the EAIC's capacity to encourage cross-border knowledge sharing and interpersonal connection is crucial and vital.
Since he entered the insurance industry in 1965, the globe has seen numerous changes, including the expansion of the automotive industry and the accompanying insurance, as well as the rising use of satellites by the insurance industry.
"I believe insurance companies have responded adequately to the demands of society by inventing new insurance and encouraging its usage in response to the emergence and acknowledgment of new hazards," he said. "It is also significant that newly developed digital technologies such as the Internet and even drones have begun to be employed for insurance sales, contract management, accident response, and payment."
As clients gain familiarity with these ways of commerce, however, they will continue to demand more from insurance companies and their connected services. Therefore, the industry must respond swiftly to these needs.
"In this light, I believe that insurance and the insurance industry must undergo radical transformations," he stated. "We cannot sit idly by as our industry gradually disappears. We must, in brief, become a provider of risk management services."
"Recognizing risks, forecasting the damage and losses that risks may cause, developing and implementing steps to minimize or decrease those risks, and even offering insurance to cover the eventual manifestation of risks and the consequent damages and losses. I feel that an insurance company's objective must be to provide these services," he stated.
The Russia-Ukraine Conflict and COVID-19
At yesterday's seminar, participants were captivated by timely topics such the Russia-Ukraine War and the COVID-19 epidemic.
Mr. Steve Cochrane, chief APAC economist at Moody's Analytics, stated, in reference to the impact of the Russia-Ukraine crisis on Asia, that compared to Europe, North America, and Latin America, the Asian area is a mixed bag with a great deal of strength. However, he added, "Our projection for 2023 is that many of the region's economies with rapid growth will likely experience a GDP decline."
Commenting on the lasting consequences of COVID-19, the chief economist of Peak Re, Clarence Wong, stated that the globe is undergoing significant changes, notably in the supply chain, government regulations, and digitalization. In addition to military conflicts, geopolitical tensions, and other socio-economic events, there are several other elements that influence consumer behavior and economic performance, which will have an impact on the future. "We must evaluate all of these in order to envision the future, and we must take a transparent approach in order to comprehend the impact on customers and societies in order to capitalize on opportunities," he said.
Fubon Life, the Insurance Institute of Asia and the Pacific, Korean Re, Moody's Analytics, Peak Re, and Swiss Re are among the sponsors of the two-day EAIC diamond anniversary conference. Asia Insurance Review manages the conference and serves as its official media partner.
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