Asia Pacific Update: March 25
In today’s edition
In today’s edition, we look at the current state of Asia Pacific’s insurance industry. If you’d like to talk to us about any of these issues or how you can manage issues and prepare recovery plans, please reach out to us here firstname.lastname@example.org.
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Recovery Spotlight: insurance
The changing landscape of Consumer Insurance
As vaccination gets underway across the Asia Pacific, insurance companies in Malaysia and Singapore providing coverage to customers if they are hospitalised due to side effects from COVID-19 vaccine while in Thailand, the price of coronavirus insurance is expected to fall by 20% this year.
Quieter roads in Singapore in 2020 have led to insurers returning to the black where it came to accident insurance however, the General Insurance Association of Singapore warned as economic activity returns, accidents are likely to rise again. The insurance industry in the Philippines has suffered a 9.89% YoY decline to P28.62B (US$690m) in 2020 Q3.
To boost passenger confidence, Cebu Pacific Airline in the Philippines is now offering the COVID-19 insurance add-on while Suncorp Insurance in Australia stopped offering travel insurance in the wake of the pandemic.
Travellers in New Zealand are concerned that their travel insurance will not cover anything beyond COVID-19 should they go to Australia on the trans-Tasman travel bubble. Those in Singapore find themselves more fortunate as local insurers are updating their policies to include the cost incurred due to medical evacuation or cancellation should the travellers tested positive for COVID-19.
According to a report by Moody’s, in South Korea, as the population average age increases, its insurance industry looks to adapt to products aimed at an older population and those who are retiring from work.
Insuring against climate change
Climate change remains a concern for the insurance industry. Severe weather cost the New Zealand insurance industry NZ$248 (US$172m) in 2020. In light of the recent flood and heavy rain in Australia, insurance claims are expected to flood in. To date, New South Wales has logged nearly 10,000 insurance claims.
In Singapore, the cost of insurance for businesses is expected to rise due to a wide range of factors from supply chain vulnerability, macro-economic environment and weather volatility. Japanese insurance companies are seen as lagging behind in addressing climate change – as only a handful of companies will stop insuring and investing in coal power projects. Several insurers in South Korea are setting up internal committees to address matters arising from Environment, Social and Governance (ESG).
About COVID-19 Recovery Report:
- The views and opinions reflected by these headlines do not necessarily represent those of Weber Shandwiick.
- The content of this news bulletin is a summary of publicly available news articles on events and developments related to COVID-19