Andrew Tjaardstra reviews the news

This week we spoke to InsuranceAsia News editor, Andrew Tjaardstra to get his take on the past week in insurance news in Asia-Pacific.

What has been the stand-out story for you in insurance this week - and why?

IAG’s appointment of former CFO Nick Hawkins as its incoming CEO shows that stability is key in very uncertain times. Peter Harmer has had a successful tenure but is leaving in a year of unprecedented challenges with the pandemic, a recession and record bushfires. Hawkins understands the business inside out and will be able to ensure IAG keeps on a stable footing as it focuses more on its key markets of Australia and New Zealand.

Which news this week do you think will have the most long-term impact on the insurance industry?

Nick Hawkins will start his role the day before the US elections. At a press conference this week, Donald Trump’s failure to commit to a peaceful handover of power should he lose the US election in early November to Joe Biden is a direct threat to wider economic stability and the ability for firms across the world to plan ahead with certainty. Any disorderly transfer of US power could rattle global stock and bond markets. The Black Lives Matter protests have also been rumbling on – meaning there is a potential powder keg of trouble on the horizon.

The global (re)insurance community – which has a huge presence in, and connections with, the US will not be immune from the fall out (if it happens). On the other hand, if Biden wins in a smooth transition – this could bring about a new wave of international co-operation which will help benefit the market as a whole.

Which news story in the UK will have an impact or be of most interest to the Asian insurance market?

QBE’s decision to appeal the UK court judgment on the determination of payouts for business interruption policies related to the Covid-19 pandemic is set to be very interesting.

Although policy wordings are tighter in APAC overall – there is a test case about to go through the Sydney courts. A hearing, involving the Insurance Council of Australia, is set to begin in the New South Wales Court of Appeal on October 2.

Although not yet clear, there could also be ramifications for policies in Asia. Overall, the market – which is a global community - will be seeing how their peers are faring over the virus as the reputation of the market is on the line.

Who is your insurance personality of the week and why?

Marsh’s Jason Groves for helping organise the Dive In festival during a pandemic. It must have been an incredible task and congrats to everyone involved around the world! I learned a lot attending the Chartered Insurance Institute’s Hong Kong event on mental health.

Looking back over the last six months, what story do you think has or should have had the most impact on the insurance market to date?

It has to be the continuing effects of climate change. The bushfires in Australia and California are the wake-up calls of wake-up calls for the market and governments. We keep talking about “larger fires”, “larger losses” and warmer summers – well it is happening in real time with some very scary results.

Already in China this year, there have been 20 plus record flooding events dislocating millions of people. The difference in China is that there is less insurance coverage, so the market losses haven’t been as great and therefore perhaps the situation hasn’t had as wider coverage as it should.

How have you found working through the pandemic from your base in Hong Kong?

I have actually been working from the office throughout 2020. Half the team chose to work from home and it was a balance that allowed us to keep social distancing. Overall, we feel safe in Hong Kong with everyone wearing masks (from the moment you leave your door – although each office has its own rules), clean public transport, plenty of hand sanitiser everywhere, and compulsory temperature checks at offices and restaurants. Am actually surprised how little social distancing there is at the likes of supermarkets – clearly masks work!

There has been evolving guidelines on bars and restaurants with the most strict measures being a maximum of two people at restaurants (bars were closed), with a closing time of 6pm and to provide delivery food and takeaway only. The latest rule is a maximum of groups of four with bars needing to close at midnight. We are looking forward to live music returning on October 1, as long as there is no ‘fourth wave’ of the virus.

And finally: If you could interview anyone from the world of insurance and they had to answer your question 100% truthfully, who would it be and what would you ask them?

I would like to ask Warren Buffett face to face about his take on the impacts that humanity has had on climate change.