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2018 is well-framed by more frequent and severe natural catastrophes causing significant correlated impact to many lines of insurance across all major Asian markets. With new and emerging risks on the accelerated rise, now more than ever, clients must look beyond present risks to evaluate costs well beyond mere premium spend.
Clients need to know - with certainty - the insurance strategy that is exactly right for their business. (https://www.willistowerswatson.com › media › WTW › Insights › 2019/02)
As 2020 unfolds, two decades into the millennium, we're also sailing into a period of change: social change, climate change, technical change. Change brings new opportunities to businesses and individuals, as well as new threats, and we like to keep our finger on the pulse on our clients' behalf.
Here's the latest news about our insurance lines.
Asia is rich in gigantic engineering and construction projects, created to develop our economic and transport systems. There's a slight slow-down in China but other than that, Asian governments are keener than ever to invest in everything from bridges and tunnels to roads, railway lines, airports, new cities, offshore wind farms and more.
Because the commitments and financing are long term for this kind of project, they're attractive to insurers. Giant construction projects usually have one lead insurer plus, as many as eight more insurers. The biggest projects can have as many as twenty insurers on board to spread the risk.
At the same time a report called Engineering and Construction Claims and Insurance Trends by Allianz Global Corporate Specialty has seen increasing losses related to defective products in every part of the world, including Asia. And storm damage during construction is a particular risk in our region. Cover is becoming more sophisticated in Asia too, with innovations like inherent defect insurance for completed construction projects starting to appear.
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If you would like to get a good picture of the risks you face as a business in the marine insurance sector, it's hard to beat real-life insight from around the world into what causes claims, how cargo, equipment and ships get damaged and lost. Take a look at the latest news from the global marine insurance industry here on the Insurance Marine News website and you never know what you might find out. It may even help you dream up new ways to reduce the risks your marine business faces.(https://insurancemarinenews.com/)
It looks like Hong Kong's business community, small and medium-sized companies, in particular, will pay for the damage caused by vandalism during the 2019 protests. That's because very few of them have insurance covering civil unrest.
Hong Kong insurance usually protects businesses against fire and natural disasters, but not civil unrest. Uninsured claims for fire, graffiti and broken windows will be turned down. In the short term, Hong Kong insurers are expecting a surge in demand for policies that include riot damage. At the same time, they anticipate a drop in demand for travel insurance, a general economic downturn, and a 'dramatic rise in litigation around what’s covered and what’s not'.
According to a report by Swiss Re., worldwide economic growth will weaken in 2020 and 2021. The next big economic engine of global growth will be emerging in Asia. They also predict Asian insurance markets will continue to grow thanks to 'very strong demand in emerging Asia', particularly China, and they expect non-life insurance and life assurance premiums to increase during 2020 and 2021.
Inzura is a UK-based insurance technology company. They have just opened new offices in Thailand and Singapore, an expansion that'll let them take advantage of a fast-growing demand from Asian insurers who want to embrace new tech for a digital-first, data-driven approach.
Asia is quickly becoming a hub for InsurTech innovation, with regulators in our region actively promoting digital innovation and digital customer channels. Inzura wants to work with dynamic Asian insurers and brokers to use data, AI, smartphone apps and telematics to boost efficiency and improve the customer experience.
Salary growth across Europe is predicted to slow in 2020, with pay increases way below those seen in our own region. The management consultancy ECA International has discovered that the average real salary increases across Europe are expected to be down 0.1% in 2019 despite Europe's low inflation rates. In comparison workers across Asia should see the world's highest rates of salary growth. In fact, Asian nations already represent 13 of the top 20 countries for international real wage increases.
When you have to pay more for great employees, you want to keep hold of them. It looks like employee benefits in Asia are about to become a lot more desirable.
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