Insurance industry can do better on climate risk—QBE SG CEO

In today’s rapidly evolving climate, the insurance industry faces mounting challenges and opportunities that demand bold action. Ronak Shah, chief executive officer of QBE Singapore, believes the sector needs to step up its game to tackle climate risk, regulatory complexities, drive innovation and meet evolving customer expectations.

“The ball is in our court to bring in more sophistication and product development,” Shah told SIRC Today, urging the industry to move away from traditional approaches and lead the change. 

With climate change reshaping the risk landscape, Shah argues that these threats should push the industry toward new solutions, pointing to the urgent need for recalibration, sharper risk modelling, and more accurate catastrophe pricing strategies. 

“Recent super typhoons and earthquakes in Asia show that what were once one-in-100-year events are now much more frequent,” he said. “We need to be a lot more commensurate with the events that are happening.”

Shah sees these shifts as an opportunity to innovate, highlighting parametric insurance as a promising solution, along with catastrophe bonds and insurance-linked securities (ILS) to strengthen insurance capital markets. “The ILS market and cat bonds are examples of how we can improve the solutions available to manage, transfer and diversify risk,” Shah noted.

He believes there is still more to be done, pointing to sectors such as renewables where insurers could offer broader coverage and end-to-end solutions. “We are not doing enough in terms of industry solutions,” he argued.

“We need to create solutions, not just products.”

Shah noted that the industry is “still very traditional” and can be more agile and nimble. Leveraging technology, artificial intelligence, data, and analytics can help develop advanced solutions that go beyond generic products.

“We need to embrace technology more effectively and combine it with strong distribution networks and relationships but do so in a more efficient way. As the saying goes, we need to do more with less,” he said. “We need to create solutions, not just products,” he stated.

Shah highlighted the importance of talent in driving this change. “Having the right people for the job, in the right positions, is crucial for us to improve as an industry,” he noted.

Asia’s regulatory landscape also adds complexity. “Every regulator has a different mindset and approach, and in many areas, there are disconnects,” Shah pointed out. The fragmented regulatory framework, with each country enforcing its own set of rules, hinders the industry’s ability to effectively manage risks across borders.

Shah calls for closer work with regulators to address emerging threats and broader issues such as geopolitical shifts and rising protectionism, which could affect cross-border trade and insurance dynamics.

“Geopolitical shifts and self-protectionism are things we are all watching. It’s crucial to balance protecting local markets while ensuring the smooth flow of insurance business across borders,” he said.

Raising awareness

Shah sees a significant opportunity to bridge the awareness gap in Asia, as the insurance sector hasn’t reached the sophistication of markets such as North America or Europe. This gap is evident in consumer and corporate awareness of emerging risks, such as cybersecurity or artificial intelligence governance.

“The fact that almost all small businesses in the region are underinsured represents a huge opportunity for the industry,” he said, noting that this is a focus area for QBE.

“Risk management and advisory services need to be integrated into a broader customer experience,” Shah emphasised. “We need to become a bigger part of the overall experience for the end customer, whether they are a corporate client or an individual.” Educating clients on risk and offering comprehensive solutions can drive significant improvements in insurance penetration across the region.

Shah explained that QBE’s strategy in the region includes expanding digital partnerships and diversifying product offerings, such as captive insurance and catastrophe bonds, to better meet the region’s unique needs. The company is looking to tap into markets such as Japan, Korea, Thailand, and the Philippines through inward facultative business, writing policies from established hubs in Singapore and Hong Kong.

“We are not about setting up offices in every market. Instead, we aim to be efficient and effective in how we approach business,” Shah said. “Expect more dedicated, bespoke go-to-market strategies from QBE in the coming months.

“The potential in this region is massive, and QBE wants to be a big part of it,” he concluded.

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