Page 17 - The Insurance Times December 2024

Helene, which caused unexpected dev- regulatory reforms, and evolving con- South Korea's Insurance
astation in North Carolina's Appala- sumer behavior is reshaping the insur-
chian Mountains, illustrate how tradi- ance landscape across regions. While Market Forecasted for
tional risk models are being upended. the increasing frequency of extreme Steady Growth
Many economic losses from such events weather events highlights the urgency
remain uninsured, as standard policies for climate-adaptive insurance solutions, South Korea's general insurance sector
often exclude damages from second- market-specific factors such as demo- is projected to grow at a compound
ary perils like flooding. graphic shifts and economic recovery annual growth rate (CAGR) of 5.2%
In Europe, 2024 has been particularly are influencing growth trajectories. from 2024 to 2029, with direct written
premiums reaching $33.3 billion. Fac-
costly for insurers following two severe As seen in South Korea and Saudi tors such as economic recovery, regu-
floods in central and eastern regions. Arabia, regulatory frameworks and latory mandates, and rising demand
Projections for the 2050s indicate that targeted initiatives are driving market
northern Germany, among other ar- expansion and addressing emerging for liability and health insurance are
eas, will face increased risks of pluvial risks. Meanwhile, the experiences of driving this expansion.
flooding. These developments under- Nepal's life insurance sector in adopt- Motor insurance, which constitutes
line the urgency for robust infrastruc- ing global standards underscore the nearly 60% of the market, is expected
ture, flood-resistant construction, and importance of international collabora- to grow modestly at 1.7% in 2024 due
proactive risk management to address to declining vehicle sales. However,
tion and knowledge-sharing to en-
the escalating challenges posed by cli- inflation-induced increases in repair
hance resilience and transparency.
mate change. costs are anticipated to support a 4.5%
The growing emphasis on climate risks,
Raymond Barrett, lead author of the as highlighted by Aon's survey, reflects CAGR from 2025 to 2029. Liability in-
S&P report, noted that insurers have a broader shift in consumer and indus- surance, the second-largest segment,
long acted as an early-warning system try priorities. Insurers are increasingly is forecasted to grow by 12.2% in 2024,
for identifying and mitigating risks. being called upon to not only provide driven by regulatory initiatives such as
With climate change intensifying natu- the Virtual Asset User Protection Act
financial protection but also act as
ral disasters, it is crucial for industries catalysts for broader societal and en- and revisions to the Personal Informa-
beyond insurance to adopt a cross- tion Protection Act.
vironmental resilience. By embracing
sectoral approach to managing these innovation, fostering collaboration, The personal accident and health
risks effectively.
and addressing emerging challenges (PA&H) insurance segment is also wit-
Broader Implications for the proactively, the global insurance indus- nessing significant growth, fueled by an
try can position itself as a key player in aging population and rising healthcare
Global Insurance Industry navigating an increasingly complex risk costs. This segment is expected to ex-
The convergence of climate change, landscape. pand by 14% in 2024, with a 5.1%
CAGR forecast for 2025-2029. Despite
Nepal's Life Insurance Industry Adopts Global Stan- challenges, including geopolitical ten-
sions that may impact premium pric-
dards ing, the sector remains resilient, bol-
Nepal's life insurance sector is gearing up for the adoption of International stered by evolving consumer needs and
Financial Reporting Standards (IFRS) 17 and the Risk-Based Capital (RBC) robust regulatory frameworks.
model, with guidance from Sri Lanka's Ceylinco Life. A delegation from Nepal,
including top executives from 10 life insurance companies, engaged with
Ceylinco Life to understand the challenges and strategies for implementing Join
these standards. Online Certificate
Ceylinco Life shared its experience transitioning from IFRS 4 to IFRS 17, em- Course on
phasizing the importance of consistent principles for insurance contract ac-
counting. The RBC model was highlighted as a critical tool for ensuring fi- Marine Insurance
nancial stability and risk management. Nepal's regulators aim to facilitate
the industry's transition while aligning with global best practices, marking a For details please visit
significant step forward in the modernization of its insurance sector. www.smartonlinecourse.co.in

16 December 2024 The Insurance Times