Sustainable growth a priority for re/insurers as markets in Asia transform: SRA leaders

“The future will be quite different; transformation is required for a sustainable path forward in these turbulent times.”

That is a bold yet clear message from Marc Haushofer, chair of the Singapore Reinsurers’ Association (SRA), who spoke to SIRC Today in the lead-up to the 20th Singapore International Reinsurance Conference (SIRC), before handing over the torch after the conference to Kenrick Law, currently deputy chair, who leads Allianz’s reinsurance branch in Asia-Pacific.

“We’ve been deliberate and intentional in how we structure panels.” Jeslyn Tan

Haushofer believes Asia-Pacific holds “big potential” for long-term insurance growth, particularly in markets such as China, India, and Southeast Asia, driven by burgeoning demand and low penetration. Yet he is quick to caution against the allure of growth at the expense of sustainability.

“For far too long, our industry has allowed itself to focus on top-line growth over bottom-line sustainability,” he said. “The challenge in Asia lies in fully understanding the ever-changing risks, keeping up to speed and commercialising our needs, because Asia is extremely cost-conscious.”

Under the theme Revolutionize Re/Insurance, this year’s SIRC promises to address these complexities head-on. “We’ve been deliberate and intentional in how we structure panels,” said Jeslyn Tan, executive director of the SRA. “Our focus is on crucial conversations about sustainability, artificial intelligence (AI), and talent—topics that are crucial for the industry’s evolution.”

The conference, now in its 20th year, will feature discussions on embedding sustainability into re/insurance practices, harnessing AI for better risk management, and strategising talent retention to build long-term resilience.

Law, incoming SRA chair, spoke about the economic uncertainties clouding the Asia-Pacific landscape. He highlighted how regional growth is to a degree “hinging on what’s going to happen in the US election” and on China’s economic policies.

“The interest rate environment is not very favourable for Asia. In the last few years, high interest rates in the US have suppressed investment in Asia, which relies heavily on infrastructure and exports,” Law noted. “This has been a challenge to growth.”

He remains optimistic, however. “Asia’s market still has considerable room for growth, even amid the global slowdown,” he said, pointing to the region’s expanding middle classes and infrastructure developments as key drivers.

Haushofer emphasised the under-penetration of insurance in emerging Asian economies. “Insurance penetration in Asia is still relatively low, especially in emerging markets where the appetite for coverage is just starting to grow,” he said. This gap represents a massive opportunity for innovative insurance solutions, especially as economic and societal risks evolve.

Climate risk and sustainability

Climate risk is another high-stakes topic on the SIRC agenda, particularly as extreme weather events batter the region with increasing frequency. Haushofer highlighted that many Asian countries are “underestimating the exposure to natural catastrophes in their pricing models”, stressing that accurate risk assessment and portfolio data are essential in order to protect clients effectively.

“Some insurers don’t even have precise data on the geographical spread of their portfolios,” he remarked, which poses challenges for reinsurers when natural disasters hit and data-gathering is delayed.

“Sustainability will be extensively discussed, not just as a concept but as a practical framework for building long-term resilience,” Tan added. “Advanced data modelling and analytics, crucial for improving climate risk assessment, will be explored thoroughly in panels on AI and data.

“Our discussions on AI go beyond the surface,” she remarked. “We’re focusing on the ‘how’—how AI can truly revolutionise re/insurance, not just in theory but in practical application.”

Haushofer sees AI as a double-edged sword: full of potential but fraught with risks. “We’re dealing with a technology that is not fully understood and, in some cases, not fully controllable,” he said, outlining scenarios where AI systems might one day defy human oversight.

“We’re facing a dual challenge,” Law said. “On one side, the high cost of implementing AI can be a barrier. On the other, attracting data scientists and AI specialists is difficult because they’re more inclined to join tech companies such as Google or Facebook.”

Tan agreed, saying: “Fighting for talent is a significant challenge, and we’ve structured our talent panel to explore how the re/insurance sector can appeal to the next generation.”

“Nobody’s actually inspired to join the insurance industry,” Law added. Attracting young professionals is more than a recruitment challenge, Haushofer noted. “Things are changing so quickly that, if we don’t bring in fresh talent, we will struggle to keep up with the pace of change,” he said.

The SRA plans to collaborate with universities and tech institutions to develop a pipeline of data-savvy professionals. “It’s about staying ahead,” he emphasised.

The newly introduced Asia Forum, chaired by Law, aims to put a spotlight on the region’s unique needs. Discussions will focus on leveraging data for affordability and risk mitigation, and Law sees this as essential for a market as cost-sensitive as Asia.

“Asia is extremely price-sensitive, and data can help us create targeted, cost-effective solutions that mitigate risk,” he explained.

“We want to bring something new to the table, and the Asia Forum does exactly that,” Tan added.

Cybersecurity is another area demanding innovative thinking. With attacks becoming more sophisticated, Haushofer argues that the re/insurance sector must be proactive.

“Cyber threats are growing across the region, and it’s an area where the industry needs to be more creative and innovative,” he said. AI and cyber risks are intertwined, creating a complex risk landscape that will be dissected at SIRC.

“I am humbled and excited to take on this new role.” Kenrick Law

Insurance-linked securities (ILS) are gaining traction in Asia, particularly in Japan and Australia. “ILS can be a useful alternative, especially where traditional models face constraints,” Law said. By diversifying capacity, ILS allows companies to mitigate risk more strategically, a point that will be explored in detail during the conference.

Infrastructure investment, especially in renewable energy, remains a significant growth area. “Asia’s infrastructure needs are vast, and re/insurance has a key role to play in supporting these developments,” Law said. Renewable energy projects, in particular, are attracting increased attention from re/insurers looking to align with global sustainability goals.

Changing of the guard

As Haushofer transitions out of his role, he is hopeful for the industry’s future under Law’s leadership. Law shared his excitement, saying: “I am humbled and excited to take on this new role. Having been part of the SRA for the last 10 years, I have witnessed first-hand the progress we’ve made as an association and the impact it has had on the industry.”

His vision includes a continued focus on sustainability, talent, and technology, aiming to make the region a stronger and more resilient marketplace.

“SIRC is more than just a conference; it’s where the industry connects and pushes boundaries,” Tan concluded. “We’re always evolving, taking feedback, and making improvements each year.”

For more news from SIRC Today, click here.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.