Insurers prep for Asia's regulatory shake-up

Recent regulatory changes in countries like Vietnam, Thailand, and Indonesia are shaping the future of Asia's insurance industry.

Clemens Philippi, CEO of MSIG Asia, said these updates are impacting the market, with new laws affecting technical reserves, foreign ownership, risk management, and capital requirements. He emphasises the potential for industry consolidation and the importance of robust risk management practices, illustrating how MSIG Asia is proactively adapting to maintain its competitive edge amidst these evolving regulations.

“In 2024, we will see a continued high demand for insurance solutions, which therefore means continuous (but impacted) growth. [The impact] from new insurance regulations from each market can be positive or negative. This could mean growth opportunities,” Philippi said.

In his view, there are three catalysts the industry will see in 2024: higher demand to close the insurance gap, increase in health coverage, and adoption of new technology. Whilst these factors present an opportune time for sprucing up insurance offerings, a hurdle that varies in size for insurers is regulation-related.