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Asia Pacific Sector Insights
| Navigating the AEC Landscape: Strategies for Insurers in ASEAN
Using insurance coverage makes it possible to
assure losses, thus reducing companies or
households’ dependence on precautionary
savings. The size of the substitution, or diversion
of funds saved at banks, depends on how
insurance premiums are financed. No diversion
will occur if the premiums are paid by additional
income source. However, if it is financed by
shifting from one intermediary’s assets to
insurance income or assets, it will lead to
withdrawals from banks.
Bolster Socio-Economic Stability
As an additional social safety net, wider
availability of insurance can stabilize economies,
making business entities more willing to accept
aggravated risks. For instance, purchase of trade
credit insurance can encourage more open
account trading and boost cross-border trade.
By accepting claims, insurers pool premiums
together to form reserve funds. Therefore, they
play an important role to enhance internal cash
flow of the assured. As institutional investors,
insurers place large amount of assets in the
capital market or invest in bond issuance, which
help fund public and private projects, and
stimulate growth of the financial market.
With shifting changes in the horizon, Asia’s
insurers are tapping into data mining to enable
straight through processing of premium
collection and claims payments, and harness
additional security and fraud protection.
To serve that goal, Citi’s analytics modules and
payments risk manager can address insurers’
current business needs, and function as critical
business tools across multiple countries as the
pace of change in ASEAN gathers speed.
To serve that goal, Citi’s analytics modules and payments risk manager can
address insurers’ current business needs, and function as critical business
tools across multiple countries as the pace of change in ASEAN gathers speed.
