A growing demand for specialist insurers in Asia-Pacific

As businesses across Asia-Pacific confront an increasingly complex risk landscape, cyber threats have surged to the forefront of managers’ concerns. Beazley’s 2024 “Spotlight on Cyber and Technology Risk” report highlights this mounting anxiety, with nearly one in four Singapore business leaders citing cyber risk as the top threat this year. Yet almost a fifth of these leaders feel unprepared to handle it.

Jessica Schappell, Beazley’s newly appointed head of Asia-Pacific, shared her insights in an interview with EAIC Today about the region’s rapidly shifting risk environment and the opportunities it presents for insurers like Beazley. Schappell, who has succeeded Lucien Mounier, discussed the central role that specialist insurers play in navigating these complexities.

“Businesses are grappling with how AI will impact their operations and cybersecurity strategies.”

“Cyber risk is a growing concern, particularly with businesses facing an era of accelerated risks,” Schappell noted. “We’re seeing more sophisticated phishing attacks from threat actors, and businesses are grappling with how artificial intelligence (AI) will impact their operations and cybersecurity strategies.”

This trend is further reflected in Beazley’s report, published in September, which highlights the growing divide between technological advancement and businesses’ readiness to respond. 

“Twenty-nine percent of those interviewed believe that technology obsolescence is a risk they face this year,” Schappell pointed out, adding that rapid innovation is leaving many companies vulnerable to risks they have yet to fully comprehend.

Addressing these challenges requires more than just a generalist approach. “Cyber is very important to us in the region. Our innovation and leadership give us a strong foothold and unique selling point for our clients,” Schappell emphasised.

“We’re one of the few insurers in the region with a team of three cyber underwriters, an in-house Incident Response manager, and a highly experienced claims professional,” she stated.

An optimistic picture

Beazley is looking to scale and diversify its marine book by broadening product capabilities. This expansion is part of the company’s broader strategy to solidify its presence in Asia-Pacific while meeting the region’s specialist risk needs.

However, market conditions in the region have been far from easy. “Competition is strong, and rates are down across several classes of business, making it challenging to both win and retain business,” she said.

“On top of that, talent acquisition in Asia-Pacific has been tough—a challenge I have experienced first-hand.” 

Despite this, Beazley has been able to grow its presence in Asia-Pacific over the past six years, thanks to significant investments in talent and products.

“Beazley does a lot to be a diverse and inclusive employer where people can really grow,” Schappell said. “We got to where we are with a large investment in this region about six years ago, allowing us to grow our footprint in people and products.”

Schappell believes that Beazley’s focus on specialisation and innovation will position the company to seize the opportunities that lie ahead.

“We’re entering an exciting time in the Asia-Pacific region. We’re seeing a growing sophistication, particularly in lines such as cyber, that’s driving companies to seek out specialist insurers to partner with,” she remarked.

“The Asia-Pacific market is highly fragmented, with different levels of economic maturity and cultural differences, which highlights the value of working with a specialist insurer,” she said.

Schappell concluded by citing a key takeaway from Beazley’s recent report: 47 percent of executives interviewed said their trust in insurers has increased since 2023. “Isn’t that a great place to be from an insurer’s perspective?”

 For more news from the East Asian Insurance Congress conference (EAIC) click here.

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