Strategies to address changing risk landscape

The risk landscape for the global insurance market has become increasingly complex and is evolving at an unprecedented pace, posing challenges to the insurance sector in devising business strategies and managing their operation. The Hong Kong Insurance Authority (IA) recently hosted a panel discussion titled “Insurance Innovation Unlocking Business Potential in the Post-Pandemic New Normal” at the Asian Financial Forum (AFF), where industry leaders and experts shared insights on the changing risk appetite of businesses, and how the industry could turn these challenges into opportunities through innovations.

“Hong Kong has an extremely resilient insurance market and one of the strongest talent pools in the region, and what we further need is the confidence in ourselves,” said r MM Lee, head of Technical Expert Team of the IA. “As we are facing a highly volatile market on the one hand and reopening of borders on the other hand, it is crucial for the industry to refresh strategic directions and capture the rising opportunities.”

The panel, composed of senior executives from leading insurers and a broker company, gave an overview of how the business environment and appetites had changed with emerging risks such as climate-related risks, inflation risks and geo-political risks, and the corresponding impact on the insurance market. They also shared views on risk management strategies under such market uncertainties.

The panel also placed focus on the future trends and opportunities for the Hong Kong insurance market in the next decade as speakers discussed noticeable trends of innovation in the life and non-life sectors since the beginning of the pandemic, and the competitive edges of Hong Kong as a global risk management centre and a regional insurance hub.