ASIATODAY.ID, SINGAPORE – EU-ASEAN Business Council (EU-ABC), an advocacy organisation representing the interests of European businesses operating in Southeast Asia, published a position paper on the insurance industry’s crucial role in achieving inclusive and sustainable growth in ASEAN – in line with the theme of Indonesia’s Chairmanship of ASEAN in 2023 – “ASEAN Matters: Epicentrum of Growth”.
Launched ahead of EU-ABC’s annual consultation meeting with the ASEAN Finance Ministers and Central Bank Governors today, the report, “Realising Inclusive and Sustainable Growth in ASEAN: The Role of Insurance” lays out key recommendations for ASEAN Member States on digital access to protection, a growth-oriented regulatory environment, transition towards a low-carbon economy and de-risking green investments.
ASEAN markets jointly achieved a remarkable 9 percent growth in insurance premium volume in 2021, surpassing the global average of 3 percent and outperforming other major regions and markets worldwide.
Building on this momentum, EU-ABC’s paper stresses the importance of a growth orientated regulatory framework to extend insurance penetration rates. It also encourages ASEAN regulators to draft regional guidelines on the supervision of digital insurance and introduce relevant local rules to improve consumers’ digital access to insurance.
As ASEAN makes moves to transition to a low-carbon economy, the paper also urges policymakers to consider how to work with the insurance sector on the financing of climate change mitigation action.
The paper specifically notes that “realising inclusive and sustainable growth in ASEAN requires strong commitments and joint efforts from all stakeholder. Insurers, with triple roles as risk managers, risk carriers and investors, have a vital role to play in the process.”
Commenting on the EU-ABC’s recommendations set out in the paper, Chris Humphrey, Executive Director at the EU-ABC, said, “Insurance is crucial for the economic development of ASEAN countries, providing individuals and businesses with financial protection against risks and uncertainties, as well as being a source of long-term development financing. This paper today from the EU-ABC provides clear recommendations for regulators and governments across ASEAN which, if adopted, would help the insurance sector play a clear role in realising inclusive and sustainable growth in the region.”
Solmaz Altin, Managing Director Strategic Business Group Prudential plc, noted, “On 20 March the Intergovernmental Panel on Climate Change (IPCC) delivered a “final warning” in its sixth assessment report: act now or it will be too late. Insurance companies have a key role to play in accelerating the transition to a zero carbon economy. Prudential believes in a just and inclusive transition that leaves no one behind. The recommendations in this report, which are aligned with Prudential’s October 2022 paper “Supporting a just and inclusive transition”, will help to ensure that ASEAN Member States have access to the finance they need to decarbonise their economies.” (AT Network)
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