What I’ve learned from my time in Asia, and what comes next

When I was appointed Swiss Re’s CEO in Asia back in 2019, there was no way of anticipating the challenges our industry and the entire region were about to face. But as I prepare to take on a new role with Swiss Re back in the UK, I leave with more confidence than ever in Asia’s future trajectory, and in our industry’s capacity to contribute to the region’s resilience and sustainable growth.

There's no denying COVID-19 exposed vulnerabilities in health systems and economies, and underlined the way in which unforeseen risks can have far-ranging consequences. Yet the pandemic also brought new impetus to the drive to identify and mitigate these risks, and ensure businesses and communities are better protected against future crises.

Personal health and shortfalls in insurance coverage are top of mind for consumers. And although far too many families are still vulnerable, there’s every reason to believe that by meeting customer demands for more comprehensive coverage, and the expectation for quicker, more convenient digital channels of engagement accelerated by the pandemic, we’re making significant advances in closing protection gaps across the region. Digitalisation has clear potential to help insurers reach and build trust among communities, raising awareness of and access to solutions that help to lessen the impact of the unexpected.

It’s important this renewed focus on health and protection outlasts the pandemic, as the same core principles are needed to address two major forces set to test the region over the longer-term. The first is climate change. While the prevalence of natural catastrophes in recent years has been a stark reminder of the dangers presented by a warming planet, I’ve been encouraged by APAC’s newfound resolve.

There’s been a surge in concrete commitments by governments and businesses – including Swiss Re – to reduce carbon emissions, adopt more sustainable infrastructure and shore up resilience to climate-linked disasters. As an industry, we have a vital contribution to make to this collective effort.

And there's one more major transformation about to sweep APAC. That is an aging population – a phenomenon we’re all too familiar with in my native UK, where in 20 years, people 65 and older will make up almost a quarter of the population. It’s difficult to overstate the impact a rapid decline in the number of working-age people will have on economies in Asia, to say nothing of the implications for health and pension systems.

Issues of this magnitude and complexity can only be addressed if we combine forces. Consumers, businesses and governments must forge partnerships to develop and implement proactive policies and practices that mitigate protection shortfalls. We don’t want to see these gaps spiral into a full-blown crisis.

Our recent partnership with Singapore’s NTUC Income is one example of how we can seize the initiative. It's designed to help shield Income from future fluctuations in its annuity book (as an aging society impacts capital requirements), by sharing future payments for annuitants who live beyond their age expectancy.

On a personal note, this partnership seems a fitting way to mark the end of my tenure in a region that has taught me so much over the past three years about the value of alliances, testing new approaches and remaining steadfast. Thank you to Swiss Re’s outstanding team here, and our clients and partners for their many contributions throughout this exceptional time. I have no doubt our industry and the region will continue to excel as protection becomes a shared priority for us all.?