In his first public appearance in Asia, Swiss Re CEO Andreas Berger emphasized the growing importance of data in the reinsurance sector. He highlighted the expanding gap in protection coverage and stressed that solutions lie in partnerships between the public and private sectors.
As the keynote speaker at the 20th Singapore International Reinsurance Conference (SIRC) in Singapore, Andreas Berger warned about the urgent pace at which protection gaps are widening.
«These include natural catastrophes and climate risks, cyber threats, and civil unrest,» noted Berger who has led the world’s second-largest reinsurer since last July, noting that the increase of the group's resilience is one of his top priorities.
Claims related to strikes, riots, and civil commotion have surged by 3,000 percent over the past two decades, particularly in urban areas, «which exacerbates social tensions and increases the risk of civil unrest».
Industry Must Adapt to New Risks
Andreas Berger interviewed by Jane Cheng, NMG Consulting (Image: finews.asia)
This year's SIRC hosts over 3,300 attendees, nearly 2,000 of whom are from overseas, according to Committee Chair Marc Haushofer.
«Our theme, 'Revolutionize (Re)insurance!' is fitting as we confront a world transformed by climate change and evolving global economies. Our industry must adapt to new risks and embrace technological advancements,» he said.
In his address, Berger explained that the protection gap is widening not only in developing countries but also in developed nations like the US. He stressed the need for incentives to encourage risk management and called on governments to strengthen building regulations. He believes that private-public partnerships are essential for tackling these challenges effectively.
Data-Driven Strategies
Andreas Berger in his speech (Image: finews)
To address this industry-wide issue, Berger urged both reinsurers and primary insurers to focus on data-driven strategies.
«There’s been a lot of model uncertainty in the past,» he remarked. «We need to invest more in refining our models. If we want to revolutionize reinsurance, we must have the right tools.»
AI Currently Hyped
Berger pointed out that data is no longer centralized, adding that there is a need to «constantly need to leave your environment, switch screens, and seek partnerships».
He acknowledged that while AI is currently hyped, many companies may face a reality check when they fully understand the associated costs.
«Get your data right first,» Berger advised. «Then you'll know where to apply AI – and truly benefit from it.»
