2016 INSURANCE SYMPOSIUM - DLA Piper/media/Files/Insights... · Allianz Risk Barometer: 2016 ASIA...

www.dlapiper.com 0 2016 Insurance Symposium Wednesday, 24 February 2016

Wednesday, 24 February 2016

2016 INSURANCE SYMPOSIUM

DLA Piper, No. 1 Martin Place, Sydney, Australia

Reflections on 2015: key regulatory, industry and claims developments in Australasia 3 John Goulios, Head of Litigation and

Regulatory – Singapore and Co-Head

Insurance Sector – Asia Pacific, DLA Piper

James Berg, Partner – Litigation and

Regulatory, DLA Piper


John Goulios, Head of Litigation and

Regulatory – Singapore and Co-Head

Insurance Sector – Asia Pacific, DLA Piper

Reflections on 2015: key regulatory, industry and claims developments in Asia

Paul Chen

Partner

T: +1 650 833 2225 (US)

T: +852.2103.0725 (Asia)

[email protected]

John Goulios

Partner

T: +65 6512 9517

F: +65 6512 9500

[email protected]


AEC became a single market and production base on 1 January 2016.

AEC - 10 ASEAN nations (Brunie,

Cambodia,Indonesia,Laos,Malaysia,Myanmar, Philippines, Singapore,

Thailand and Vietnam), 625m people, combined GDP of USD 2.5 trillion,

different development status and standards of living in each.

Economic integration in the form first anticipated in 2007 still quite some way

off.

ACE Blueprint 2025 contains an ASEAN Insurance Integration Framework

('Framework'), to promote deeper penetration in insurance markets with

greater risk diversification, deeper underwriting capacity, improved and

strengthened insurance sector supervision and regulatory frameworks.

Mood is promising, opportunities clear but protectionsim is challenging and

regulatory harmonisation will take some time.

THE AEC – where are we at?


Allianz Risk Barometer: 2016

ASIA PAC TOP BUSINESS RISKS 2015


KEY CLAIMS DEVELOPMENTS IN ASIA 2015 – TIANJIN DISASTER Initial estimate of $1.6 billion to $3.3 billion


CYBER RISK

1. 5 million cyber-attacks annually

80% or more go unreported

70% of Cybercrime crosses national

borders

The global annual cost of cybercrime

could be over $400 billion

Thailand was ranked among the 20

worst affected countries for

cybercrime in 2014

Bangkok post reports that more than

90% of organisations have active

malware


Popularity rose post 1997 Asian

Financial Crisis

By 2006, 63% of directors in the

region considered D&O insurance

'important' or 'extremely important'

Asian D&O market estimated to be

worth in the region of $200 million to

$400 million

Variable penetration rates

throughout the region

D&O COVER IN ASIA – THE MARKET


D&O COVER IN ASIA: TRENDS & RISKS

New players Increased awareness

Regulatory change

Cyber Security

Exposures

Environmental risk


Progress in implementing the AEC Blueprint in regards to the insurance sector

is varied and slow but the industry will see a greater impact with the actual

realization of the AEC.

Two of the top 3 insurable business risks in Asia Pac and they have held these

spots consistently over the last 4 years are: Natural Catastrophes, Man Made

Disasters and Property / Business Interruption Losses. The other notable

member of the top 5 is cyber risk

Demand for D&O insurance is growing, and volumes and size of claims Asia

still lag quite far behind the U.S. and Australia, but watch this space on

increased regulatory risk

CONCLUDING REMARKS


James Berg, Partner – Litigation and

Regulatory, DLA Piper

Reflections on 2015: key regulatory, industry and claims developments in Australia

Paul Chen

Partner

T: +1 650 833 2225 (US)

T: +852.2103.0725 (Asia)

[email protected]

James Berg

Partner

T: +61 2 9286 8193

F: +61 2 9286 8007

[email protected]


If Exxon’s Punished for Climate Change, It’ll Be for Lying to Investors


culture and conduct of fund managers

conduct of lenders re lending practices and the sale of inappropriate products

conduct of market operators and participants.

conduct of directors and auditors, including their failure to identify and report

on the inappropriate conduct of principals.

ASIC focus


http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwiTvuuCso3LAhWig6YKHQBkCQgQjRwIBw&url=http%3A%2F%2Fblog.wallstreetsurvivor.com%2F2015%2F09%2F01%2Frisk-management-for-your-portfolio-and-life%2F&psig=AFQjCNGpw7j8bOzwVnL5cdEzR-6f3WR7tA&ust=1456299898815498

2016 INSURANCE SYMPOSIUM - DLA Piper/media/Files/Insights... · Allianz Risk Barometer: 2016 ASIA...

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