No ‘silver bullet’ to driving innovation: Tokio Marine Kiln’s Spyropoulos

Innovation must be pursued with pragmatism; it must be deeply attuned to the complexities of the industry—it cannot simply be a search for a “silver bullet”. 

That’s the view of Pavlos Spyropoulos, regional managing director for Asia-Pacific at Tokio Marine Kiln (TMK), who discussed with SIRC Today the challenges and opportunities within the Asia-Pacific market. He underlined the value of steady, incremental progress over disruptive technological leaps.

Spyropoulos suggested that meaningful change in insurance comes from a cumulative series of small, practical improvements that build efficiency over time, and less from seeking radical, disruptive solutions.

“We have a tendency to think of silver bullets, whether it’s artificial intelligence, blockchain, or another technology—hoping they’ll provide an instant solution,” he said. “I don’t believe they’re the answer.

“What we need are small, incremental steps that collectively improve efficiency, reduce costs, and enhance accessibility. We need to keep looking for those 1 percent improvements that reduce friction in our industry.

“Insurance isn’t as efficient as it could be,” he said, acknowledging the sector’s long-standing inefficiencies. Initiatives such as Lloyd’s Blueprint Two aim to streamline the marketplace through electronic data-led approaches, but Spyropoulos warned that progress would be slow and complex.

“The risk environment is still very active,” he said, setting the tone for a nuanced discussion of the market. The diversity within the region demands a tailored approach to risk management, with varied conditions across lines of business and geographies. 

“What we’re seeing is a growth in the overall market, but with that, there’s also increased competition,” he said, adding that certain sectors, such as property, are drawing significant interest from global players.

“We’ve seen regulators pushing for higher capital standards in domestic markets.”

Horses for courses

Despite this competition, Spyropoulos observed, the global insurance market remains “disciplined”, although pressures are intensifying. “It’s a ‘horses for courses’ scenario,” he said, pointing to Taiwan’s recent natural disasters as an example of the need for tailored responses.

In a shifting market, Spyropoulos’s core message to is to stay disciplined and continue to innovate. “The Asia-Pacific region is an exciting marketplace with immense growth potential,” he said. 

He emphasised the importance of collaboration within the industry to “grow the pie” and support the region’s broader growth. He believes companies need to engage more meaningfully with distribution partners, particularly brokers and cedants, to discover synergies and identify opportunities for expansion.

Spyropoulos underscored the significance of understanding market conditions and nuances across Asia’s fragmented regulatory environment. “Being on the ground gives us a real sense of what’s happening in different markets,” he said, explaining how TMK’s regional presence allows it to tailor support for clients in each market. 

He acknowledged that while some regions are moving towards stricter regulations, raising barriers for entry, other areas are capitalising on relaxed standards, creating space for development. 

“We’ve seen regulators pushing for higher capital standards in domestic markets,” Spyropoulos explained, noting that this drive towards higher standards was lifting overall capabilities in Asia’s insurance ecosystem. 

In his view, these regulatory shifts lead to more sophisticated risk management practices, enabling markets to retain more risk and ultimately foster better underwriting practices. “Standards are going up, and capabilities are improving across the board,” he added.

“India’s growth in aviation is a tremendous opportunity.”

Growth and talent

For TMK, Spyropoulos said, the focus is on specialty lines such as political violence, cyber, and aviation—each representing areas of strategic investment. 

Cyber, in particular, is experiencing rapid growth across Asia, which has lagged behind other regions but is now accelerating. “We’re investing in that space,” he noted. 

The aviation sector, driven by India’s anticipated surge as a global aviation hub, and credit and political risk, are other areas in which TMK is actively expanding. “India’s growth in aviation is a tremendous opportunity,” he said. “New airports, population growth, it’s all happening.”

Targeting these sectors, however, hinges on the ability to secure and retain top talent in this competitive market. TMK has doubled its marine team in Singapore over the past year, building bench strength to support future growth. “There’s no mystery here,” Spyropoulos said of the recruitment drive. “We focus on finding the best people and empowering them.” 

To attract talent, he emphasised the company’s commitment to flexibility, strong parental leave policies, and substantial investment in training and development. “We’re striving to be an attractive employer where people can thrive, where they can accurately assess risk, and serve clients effectively,” he added.

Spyropoulos highlighted the company’s emphasis on developing junior underwriters through a graduate scheme to foster internal talent. “It’s competitive out there, so we work hard to create a culture that values development and reduces dependency on a few key individuals.”

On a broader scale, Spyropoulos believes the insurance industry must address underinsurance—a pervasive issue across the Asia-Pacific region. “Transformation would be finding a way to crack the underinsurance problem,” he said, tying in with the innovation piece. This, he argued, is a significant challenge but also a substantial opportunity. 

Climate change, for instance, requires solutions that only insurance can provide, he noted, making it essential for the industry to deploy capital effectively.

Spyropoulos said systemic risks such as pandemics and climate threats are inevitable, and addressing them requires foresight, collaboration, and public awareness. “Insurance offers real value,” he concluded, “but it’s often not recognised until a crisis hits.”

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