A new tripartite partnership between the global re/insurance industry, regulators and academia is set to launch in January, with the aim of building resilience and addressing protection gaps in Asia.
The Global-Asia Insurance Partnership (GAIP) was announced at the Singapore International Reinsurance Conference (SIRC) 2020 virtual conference by Deputy Prime Minister, Coordinating Minister for Economic Policies and Minister for Finance, Heng Swee Keat.
Heng Swee Keat explained that the GAIP would initially focus on pandemic risk and climate risk, which are seen as the areas that demand the most immediate and collective attention.
The Partnership will aim to produce actionable research insights, develop policy recommendations, and co-create innovative solutions for the Asian region, he said.
First, GAIP will act as a ‘Living Lab’ to incubate new risk financing solutions for emerging risks in Asia, with a focus on digital transformation and harnessing new technologies.
Second, it will also be a Policy Think Tank supporting Asian insurance regulators and policy makers.
And finally, the GAIP will help to build a pipeline of re/insurers with new skills in areas such as big data and AI.
“As Asia continues to grow, new risks will emerge. COVID 19 has provided a timely reminder on the importance of resilience and risk management,” Heng Swee Keat said at the SIRC conference.
“COVID-19 has underscored how little we know about the scale, complexity and inter-connectedness of risks. The next pandemic – Disease X – will not be an if but when.”
“Rebuilding from this crisis will put a significant strain on resources. Many countries rolled out large stimulus packages to cushion their businesses and households from the brunt of COVID 19. Much of these were funded through borrowings,” he continued.
“The cost of rebuilding will further add to public debt. As we seek to build back better from this crisis, we must take risk management even more seriously, and seek to build up our resilience to cope with future shocks.”
“This is especially true in Asia. This region has experienced rapid economic growth over the last few decades, which has improved the lives of billions of people and lifted many out of poverty. Asia’s growth potential remains strong, but continued growth will require greater protection against large-scale systemic risks.”