Ravi Menon, managing director of the Monetary Authority of Singapore, has praised the role of reinsurers in helping both risk pools and wider risk modelling.
Menon was speaking in an official keynote address at the start of the 2023 Singapore International Reinsurance Conference (SIRC), taking place this week.
He said that the role of reinsurance is increasingly important as nat cat losses continue present a significant challenge. Some insurers have become more selective in the risks that are being covered, a challenge that better risk models can overcome, he added.
He noted that much of Asia lies in or near the Ring of Fire, one of the most tectonically active places on earth, making it vulnerable to earthquakes, volcanoes and tsunamis.
Partly in this context, the penetration gap in the region remains a massive challenge, he reminded delegates – but also stressed the scale of this opportunity for the market.
He also said it is crucial that the industry continues to innovate, developing new products covering new risks that can leverage new opportunities.