2016 INSURANCE SYMPOSIUM DLA Piper, No. 1 Martin Place, Sydney, Australia Wednesday, 24 February 2016
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2016 Insurance Symposium
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Reflections on 2015: key regulatory, industry and claims developments in Australasia John Goulios, Head of Litigation and Regulatory – Singapore and Co-Head Insurance Sector – Asia Pacific, DLA Piper James Berg, Partner – Litigation and Regulatory, DLA Piper
Reflections on 2015: key regulatory, industry and claims developments in Asia John Goulios, Head of Litigation and Regulatory – Singapore and Co-Head Insurance Sector – Asia Pacific, DLA Piper
Paul Chen John Goulios Partner T: +65 +1 650 6512 833 9517 2225 (US) T: +65 F: +852.2103.0725 6512 9500 (Asia)
[email protected] [email protected]
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2016 Insurance Symposium
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THE AEC – where are we at? AEC became a single market and production base on 1 January 2016. AEC - 10 ASEAN nations (Brunie, Cambodia,Indonesia,Laos,Malaysia,Myanmar, Philippines, Singapore, Thailand and Vietnam), 625m people, combined GDP of USD 2.5 trillion, different development status and standards of living in each. Economic integration in the form first anticipated in 2007 still quite some way off. ACE Blueprint 2025 contains an ASEAN Insurance Integration Framework ('Framework'), to promote deeper penetration in insurance markets with greater risk diversification, deeper underwriting capacity, improved and strengthened insurance sector supervision and regulatory frameworks. Mood is promising, opportunities clear but protectionsim is challenging and regulatory harmonisation will take some time.
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2016 Insurance Symposium
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ASIA PAC TOP BUSINESS RISKS 2015 Allianz Risk Barometer: 2016
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KEY CLAIMS DEVELOPMENTS IN ASIA 2015 – TIANJIN DISASTER Initial estimate of $1.6 billion to $3.3 billion
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CYBER RISK 1. 5 million cyber-attacks annually 80% or more go unreported 70% of Cybercrime crosses national borders
The global annual cost of cybercrime could be over $400 billion Thailand was ranked among the 20 worst affected countries for cybercrime in 2014 Bangkok post reports that more than 90% of organisations have active malware
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2016 Insurance Symposium
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D&O COVER IN ASIA – THE MARKET Popularity rose post 1997 Asian Financial Crisis By 2006, 63% of directors in the region considered D&O insurance 'important' or 'extremely important' Asian D&O market estimated to be worth in the region of $200 million to $400 million Variable penetration rates throughout the region
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D&O COVER IN ASIA: TRENDS & RISKS
New players
Regulatory change
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2016 Insurance Symposium
Increased awareness
Cyber Security Exposures
Environmental risk
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CONCLUDING REMARKS Progress in implementing the AEC Blueprint in regards to the insurance sector is varied and slow but the industry will see a greater impact with the actual realization of the AEC. Two of the top 3 insurable business risks in Asia Pac and they have held these spots consistently over the last 4 years are: Natural Catastrophes, Man Made Disasters and Property / Business Interruption Losses. The other notable member of the top 5 is cyber risk Demand for D&O insurance is growing, and volumes and size of claims Asia still lag quite far behind the U.S. and Australia, but watch this space on increased regulatory risk
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2016 Insurance Symposium
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Reflections on 2015: key regulatory, industry and claims developments in Australia James Berg, Partner – Litigation and Regulatory, DLA Piper
Paul Chen James Berg Partner T: +61 +1 650 2 9286 833 8193 2225 (US) T: +61 F: +852.2103.0725 2 9286 8007 (Asia)
[email protected] [email protected]
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If Exxon’s Punished for Climate Change, It’ll Be for Lying to Investors
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ASIC focus culture and conduct of fund managers conduct of lenders re lending practices and the sale of inappropriate products conduct of market operators and participants.
conduct of directors and auditors, including their failure to identify and report on the inappropriate conduct of principals.
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