The 20th edition of Singapore International Reinsurance Conference (#20SIRC) took place in Singapore from November 4 to 7, 2024. The conference is one of the leading events in the global reinsurance industry, bringing together professionals from across the world to discuss the latest trends, challenges and opportunities within the reinsurance sector. The conference serves as a platform for industry leaders, reinsurers, brokers, regulators and other stakeholders to share insights and collaborate on key issues.
The theme of the conference was “Revolutionise Re (insurance)”. The #20SIRC Conference saw over 3,300 participants with nearly 2,000 joining from overseas. The participants include world top reinsurers, brokers, insurers, IT companies, Consultants, and Regulators. As a representative from the insurance regulator (Nepal Insurance Authority) attending the (#20SIRC) was a unique thrilling experience that provided opportunities for learning, networking, and strategic development.
Discussion Topics:
Key discussion topics typically cover a wide range of subjects, such as:
- Emerging Risks: New and evolving risks, including cyber threats, pandemics, and climate-related disasters.
- Technological Advancements: The role of AI, big data, and blockchain in reshaping reinsurance processes and underwriting.
- Regulatory Changes: Developments in global insurance regulations and their impact on the reinsurance market.
- Sustainability: How reinsurers can contribute to sustainable business practices and manage environmental, social, and governance (ESG) risks.
- Market Trends: Insights into global reinsurance pricing, capacity, and competition.
- Collaboration and Innovation: Exploring ways for reinsurers, brokers, and technology providers to collaborate and drive innovation in the industry.
As a participant I had thrilling experience attending #20sirc conference. Here’s a detailed perspective that I had experienced during my visit to Singapore.
1. Learning about Global Trends and Innovations
- Keynote Presentations: Attending keynote speeches and panel discussion by global leaders in the reinsurance sector offered valuable perspectives on emerging trends and innovations. Topics like digital transformation, AI-driven underwriting, and the effects of climate change on risk assessment were particularly significant.
2. Workshops and Skill Development
- Participating in Interactive Sessions: Engaging in workshops covering risk modeling, data analytics, and the role of technology in reinsurance proved highly beneficial for skill development.
3. Exploring the Impact of Technology
Digital Transformation in
- Reinsurance: Exploring how technology is reshaping the industry shed light on its regulatory implications. Discussions on block chain, AI, and big data analytics emphasised the importance of regulatory adaptation while maintaining market stability and consumer protection.
4. Adapting Global Insights to Local Context
- Tailoring Innovations: The conference offer wealth of knowledge that can be adapted to the local context. Engaging in discussions about the unique challenges and opportunities in reinsurance market around the globe was quite insightful.
- Sustainable Development Goals (SDGs): Insights into how the reinsurance sector is addressing sustainability and resilience in the face of climate change. Learning from global experiences could help shape regulatory approaches that promote sustainable practices within the local market.
5. Inspiration for Future Policies
- Actionable Strategies: The knowledge and insights gained from the conference inspire actionable strategies for improving reinsurance sector.
- Stakeholder Engagement: Highlighted approaches that foster collaboration and innovation within the industry.
6. Strategic Insights: Reinsurers and brokers received valuable insights to better navigate market changes and meet evolving customer needs.
8. Innovation and Collaboration: Conversations on new technologies and business models led to collaborative initiatives addressing shared challenges in the reinsurance market
9. Networking and Collaboration Opportunities
- Building Connections: The event provided opportunities to connect with stakeholders such as reinsurers, brokers, and technology providers, fostering partnerships that could support Nepal’s reinsurance sector through knowledge-sharing and capacity-building initiatives.
Relevancy and Importance of #20sirc Conference for Regulator perspective
The Singapore International Reinsurance Conference (SIRC) is highly relevant for insurance regulators from emerging markets, such as Nepal, as it provides valuable insights, opportunities for collaboration, and a platform for addressing both challenges and opportunities within the reinsurance sector. Here are the key ways in which SIRC can be useful to insurance regulators in Nepal:
1. Exposure to Global Best Practices and Regulatory Frameworks:
SIRC brings together top regulators, reinsurers, brokers, and industry experts from across the globe, offering Nepal’s insurance regulators an opportunity to learn about global best practices in reinsurance regulation. By understanding regulatory frameworks from advanced markets, regulators in Nepal can gain insights into:
- Solvency requirements and capital adequacy frameworks used in global markets.
- The application of IFRS 17, Solvency II, and other international standards.
- Techniques for managing cross-border risks and reinsurance treaties.
- How global regulators are responding to emerging risks like cyber threats and climate-related events.
This exposure can help Nepal’s insurance regulatory body to strengthen its own regulatory environment, ensuring that local players are better prepared for international challenges and evolving global standards.
2. Strengthening Nepal’s Reinsurance Industry:
Nepal’s reinsurance sector is still developing, and the SIRC provides an ideal platform for regulators to network with global reinsurers and brokers. Attending SIRC can:
- Enable regulators to build relationships with leading reinsurers and brokers in international markets.
- Encourage dialogue on strategies to attract international participants while strengthening local reinsurers.
- Offer insights into the functioning of reinsurance capacity in advanced markets and how Nepal can enhance its capacity to handle significant risks, particularly in areas like natural disaster coverage and climate-related challenges.
3. Learning about Emerging Risks and Adaptation Strategies:
The SIRC consistently addresses emerging risks such as climate change, pandemics, and cybersecurity, issues that are increasingly significant for developing nations like Nepal. For regulators, the conference provides:
- Valuable insights into how reinsurers evaluate climate-related risks and the tools available to manage natural disasters and environmental hazards, critical areas of concern for Nepal.
- A deeper understanding of parametric insurance, which offers solutions for managing unpredictable risks like earthquakes, floods, and landslides—frequent challenges in Nepal.
- Exposure to innovative risk models and risk-sharing mechanisms that could be adapted to Nepal’s context, helping to mitigate the effects of large-scale events effectively.
4. Capacity Building and Knowledge Transfer:
Attending SIRC can be a valuable learning experience for regulators, offering opportunities for capacity building. They can
- Engage in workshops and panel discussions addressing regulatory challenges unique to the reinsurance and broader insurance sectors.
- Acquire insights into cutting-edge technological advancements in areas such as risk assessment, claims management, and underwriting, which are crucial for improving the efficiency and transparency of Nepal’s insurance industry.
- Develop an understanding of insurtech and digital solutions, equipping them to integrate modern technologies into Nepal’s insurance framework effectively.
5. Networking with International Stakeholders:
SIRC is a hub for networking with reinsurers, brokers, policymakers, and regulators from around the world. For Nepal’s regulators, this presents a unique opportunity to:
- Build connections with key industry leaders, global reinsurers, and other regulatory bodies, leading to potential partnerships or collaborative efforts in developing the reinsurance and insurance markets in Nepal.
- Foster cross-border cooperation with international regulators to tackle shared challenges, such as managing systemic risks and ensuring compliance with global standards.
- Discuss regulatory challenges faced by similar developing countries and share insights on solutions that could be implemented in Nepal.
6. Promoting Financial Stability and Consumer Protection:
Regulators play a key role in ensuring the financial stability of the insurance market and protecting consumers. At SIRC, they can:
- Learn from global regulators about how to implement robust risk-based capital models to ensure the solvency of insurance companies and reinsurers.
- Understand how global markets handle the protection of policyholders and dispute resolution in cases of claims, ensuring consumer confidence in Nepal’s insurance sector.
- Gain insights on how to promote insurance penetration in Nepal, where the market is still growing and there is an opportunity to expand coverage, particularly for low-income and rural populations.
7. Enhancing the Role of Insurance and Reinsurance in Nepal’s Economic Growth:
SIRC can inspire Nepal’s insurance regulators to think more strategically about the role of reinsurance in fostering economic development. For example:
- Reinsurance can help increase insurance availability, especially for large-scale infrastructure projects, and facilitate investments in sectors like renewable energy, agriculture, and urban development.
- By encouraging the development of an effective reinsurance market, regulators can help create more favorable conditions for both local and international investments in Nepal’s insurance sector.
Conclusion
Besides gaining some insightful revolution taking place in Re (insurance) sector around the globe, as a regulator it would have been better if there would be session like Regulatory Technology (Reg Tech): Understanding Regulatory Innovations and discussion on Regulatory Challenges faced by developing countries from regulatory perspective.
Overall, attending the #20SIRC as a participant from regulator perspective from Nepal was a thrilling transformative experience, offering invaluable insights into the global reinsurance landscape. The knowledge gained about innovation; technological advancements would be critical in shaping Nepal’s reinsurance framework in days to come. This experience would not only enhance my understanding of the industry but also empower me to drive meaningful change and improvement within Nepal’s regulatory environment, ensuring that it is well-equipped to adapt to the evolving challenges and opportunities in the reinsurance sector.
(Maharjan is Deputy Director, Nepal Insurance Authority. This opinion is strictly personal)
