Page 5 - WTW Asia Insurance Market Report
P. 5

Simon Weaver

Welcome to the first Willis Towers Watson Asia Insurance Market Report. We
are pleased to provide our anticipated 2017 outlook for the Asian insurance
and reinsurance market across the full spectrum of specialty classes.

Combining a retrospective analysis of events over the last        perspective. The market is undoubtedly trying to step
12 months with our forward looking thought leadership, this       up, with various new product offerings planned for 2017.
comprehensive viewpoint gives insight on the impact of the        Different industries face different exposures and our
interconnected risks across physical and human capital            industry focus in Natural Resources, Transportation,
assets. Keeping pace with the rapid rate of change in the risk    Financial Institutions, Construction and Technology, Media
environment means that companies and their management             and Telecommunications enables us to provide specific,
teams must be well advised to make decisions based on             tailored solutions for each of them.
strong analytic support and consultative advice.
                                                                  Looking forward, Asia remains a relatively high economic
Whilst 2016 has seen some dramatic events in the political        growth area. One of the challenges facing many Asian
arena and ongoing volatility in the financial markets, there has  corporates is the war for talent. This is where the
been a general continuation in rate reductions. Several natural   expanded client proposition from our Human Capital &
catastrophic events such as the Kumamoto earthquakes              Benefits consulting business adds value. Be it in advising
in Japan, the Kaikoura earthquake in New Zealand, Super           on executive compensation, talent attraction and retention,
Typhoon Meranti in Taiwan and Typhoon Chaba in South              to designing and providing workforce benefit programmes.
Korea, and the Category 5 Hurricane Matthew in the United
States have caused widespread destruction, but without            Having integrated our consultancy and broking businesses,
causing market-changing insured losses.                           Willis Towers Watson has a client base (both from original
                                                                  insureds and services to the insurance and reinsurance
The market withstood another difficult year and capital           market) that gives us unique perspective to deliver the best
remains readily available, but are signs of stress                results and the deep expertise to add real value.
developing? Time will tell, but for now we approach
the December/January renewal season with “soft”                   Our broking activities in the region are fully coordinated,
and reducing rates in many classes. However, it is still          with Singapore acting as one of our Global Broking
imperative that client’s risks are presented in the best light    Centres of Excellence, where our regional experts deliver
to the insurance market. Our clients have benefited from          services to clients across Asia and also access other
the large Asian-based risk and analytics team Willis Towers       international markets where required.
Watson has to provide risk engineering services to their
exposures in the region. This on the ground capability has        We see 2017 as a year where our new business differentiates
also helped our brokers develop the most competitive terms.       itself from our competitors and delivers truly integrated and
                                                                  value-added solutions to our clients. We look forward to
From a buyer’s perspective, emerging risks such as Cyber          working with you over the next 12 months and beyond.
threats move higher up the risk management agenda, but
is yet to translate to policy take up. Data Laws are patchy                         Simon Weaver is the
and often not enforced even when in place, however this                             Head of Corporate Risk and
is changing and we are starting to see more public Cyber                            Broking (CRB) , Asia.
losses. Many buyers are looking for benchmarking data
to gauge Cyber loss scenarios such as Cyber extortion,                                              5Asia Insurance Market Report 2016
Reputation risk and fine inducing Privacy breaches.
Going further with these efforts to quantify the severity
of the risk, there is an increasing focus on people and
workplace culture from both a quantification and mitigation
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