The first edition of Peak Reinsurance Company Limited’s (“Peak Re”) new economic research publication ‘Peak Insights’ offers an authoritative analysis of reasons for underinsurance in Asia which are within the insurance industry’s control: A lack of trust on the part of customers in what insurers offer, and a corresponding lack of focus by insurers to build that increased confidence level from (and in) their customers and potential customers. The report discusses various responses to these shortcomings, also from the perspective of Generation Y and its assumptions around perceived preferences for doing business digitally.
Risk exposures in emerging Asia grow faster than insurance penetration. Therefore, the insurance protection gap in the region is widening. On average, only 5% of economic losses are (re)insured. About 60% of the financial resources required to recover property damages come from private sources and not from governments and insurers – this can drive the affected people and their families into poverty.
To address this issue effectively, (re)insurers need to understand the root causes of insufficient insurance demand in Asia. As shown in the report, one of the key underlying factors is the trust missing between policyholders and insurance companies. There are many ways in which trust can be built, for example through greater transparency of information provided by the insurer, increased presence and visibility in the market, simple and customer-friendly products and purchasing channels, as well as regular personal interaction. It is time for insurers to place more emphasis on the needs and expectations of their customers, especially in the digital age.
Franz-Josef Hahn, Chief Executive Officer of Peak Re, said: “For Peak Re it has been a logical step to choose the topic of protection gap for our inaugural economic research study, as our mission is to harness progressive and innovative (re)insurance opportunities for sustainable economic development and growth across Asia. Our shareholders, Fosun International Limited and the International Finance Corporation, as well as Peak Re’s employees strongly support this mission. Sharing our insights is a welcome opportunity to give something back to our stakeholders.”
– END –
About Peak Re
Peak Re is headquartered in Hong Kong with shareholder funds of US$816.9 million as of 31 August 2016. It is authorized by the Office of the Commissioner of Insurance of Hong Kong and is rated “A-” by A.M. Best, a leading international insurance industry credit rating agency. The Company is backed by Fosun International Limited (HK.656) and the International Finance Corporation, member of the World Bank Group, who have respectively invested 86.93% and 13.07% in the Company. Peak Re offers reinsurance treaty services covering a range of lines across Asia Pacific, EMEA and the Americas, tailor-making risk transfer and capital management solutions to best fit clients’ needs.
For media enquiries, please contact:
Dr. Schanz, Alms & Company
Tel: +41 44 256 1082
Tel: +65 91116871
Peak Reinsurance Company Limited
Tel +852 3509 6529