Inaugural Global Asia Insurance Partnership (GAIP) Summit
14-15 October 2024, Singapore
Theme: "Addressing Asia's Protection Gaps"
Asia's protection gaps are substantial and growing. In 2022, the protection gap in the Asia Pacific region was estimated at USD 886 billion in premium terms, a staggering 38% increase from 2017, representing half of the global protection gap[1]. Large segments of the Asian population remain underserved by insurance and other risk management solutions, leaving communities and economies vulnerable to financial hardship from unforeseen risk events such as natural disasters and health emergencies.
The inaugural Global Asia Insurance Partnership (GAIP) Summit 2024, themed "Addressing Asia's Protection Gaps," aims to tackle this pressing issue. Convened in partnership with the Insurance Development Forum (IDF), this summit aims to foster discussions on the imperatives, challenges, and necessary actions to address this critical issue, driving collaborative efforts across the public and private sectors.
GAIP's vision is to build long-term risk resilience in Asia by narrowing protection gaps through actionable research into key and emerging risk issues, developing talent to ensure the future of the insurance sector, and facilitating dialogues among its tripartite partners and other stakeholders to drive actions that address these protection gaps. In alignment, the IDF's mission is to optimise and extend the use of insurance and its related risk management capabilities to build greater resilience and protection for people, communities, businesses, and public institutions that are vulnerable to disasters and their associated economic shocks and in so doing to help achieve the objectives of the Sustainable Development Goals (SDGs). The IDF Summit held in June 2024 in London, themed "Prevent, Protect, Provoke," set the stage for this collaborative effort, bringing together senior executives from the insurance industry and prominent policymakers worldwide to discuss the evolving risk landscape and the critical role of insurance in prevention and protection.
Continuing this important dialogue, the GAIP Summit 2024 will convene industry leaders, policymakers, and experts to explore and address the pressing issues of protection gaps in Asia. Through insightful keynote addresses, engaging panel discussions, and valuable networking opportunities, attendees will gain the knowledge and strategies needed to tackle these challenges and leverage the opportunities to close protection gaps across the region.
Join us at this event and be a part of shaping the future of risk resilience in Asia.
Contact Us at info@gaip.global
[1] Swiss Re Institute Sigma Report June 2023.
Day 1 (14 October)
Closed door roundtable discussion *by invitation only (2.00pm – 3.30pm)
(start of open-door event)
1. Opening and Welcome (4.00pm – 4.30pm)
Opening and welcome by GAIP Chairman, Yoshihiro Kawai, and IDF Secretary General, Ekhosuehi Iyahen
2. Protection Gaps – Just a buzzword? (4.30pm – 5.30pm)
A protection gap is broadly defined as the gap between total economic losses arising from risk events and the losses for those events covered by insurance and other forms of financial protection. These gaps can arise from various risks, including natural catastrophes, mortality, health, retirement, etc. Despite numerous initiatives to reduce the gaps, they remain significant globally and continue to grow, exacerbated by factors such as climate change.
This panel will explore the current landscape of protection gaps, discuss what has been done globally to address these issues and examine the effectiveness of these initiatives. The discussion will highlight the importance of understanding protection gaps, the need for a holistic approach, and the role of multi-stakeholder collaboration in bridging these gaps.
Moderator: John Maroney, CEO of GAIP
Speakers:
- Jonathan Dixon, Secretary General of IAIS
- Karen Tan, Chief Risk Officer Life & Health, Swiss Re
- Gillian Tan, Assistant Managing Director of the Development and International Group and Chief Sustainability Officer, MAS
- Alexander Moczarski, Member of IDF Steering Committee, Chairman, International, Marsh & McLennan Companies
3. Tackling the Protection Gaps in Asia (5.30pm – 6.15pm)
The 2023 global protection gap arising from natural catastrophes alone was 69%, whilst the equivalent for the Asia Pacific region was 91%. Asia faces unique challenges in addressing protection gaps due to its diverse geographical and economic landscape and dynamic development.
This panel will focus on specific initiatives in Asia aimed at reducing protection gaps, addressing the unique challenges, and overcoming the barriers to implementation. The panel seeks to shed light on effective strategies and collaborative efforts to enhance risk resilience in Asia.
Moderator: Min Cheng, Deputy CEO of GAIP
Speakers:
- Bernhard Kotanko, Senior Partner, McKinsey & Company
- Thomas Kessler, Principal Finance Specialist (Disaster Insurance), Sectors Group, Asian Development Bank
- Yoshihiro Kawai, Chairman of GAIP, SEADRIF Insurance Company, and Director of ASEAN+3 DRF Initiative
4. Cocktail and Dinner (6.30pm)
Day 2 (15 October)
1. Welcome back and recap (9.30am – 9.40am)
Ekhosuehi Iyahen, Secretary General of IDF
2. Of Protection Gaps, the Climate, and where insurance fits in (9.40am – 10.30am)
Climate change exacerbates protection gaps, particularly in regions vulnerable to natural catastrophes. The increasing frequency and severity of climate-related events highlight the critical role of the insurance sector in ensuring continued economic and social development.
This panel will discuss the impact of climate change on protection gaps and the insurance sector's essential role(s) in managing these risks.
Moderator: Ekhoseuhi Iyahen, Secretary General of IDF
Speakers:
- Min Cheng, Deputy CEO of GAIP
- Ricardo Lara, California Insurance Commissioner
- Daniel Murphy, Risk and Resilience Specialist, World Economic Forum
- Mina Kajiyama, Manager, Corporate Planning Department, Tokio Marine Holdings
3. Morning tea/coffee break & networking (10.30am – 11.00am)
4. Of Health and Longevity, and where technology comes in to address the gaps (11.00am – 11.45am)
Health and retirement protection gaps are growing concerns, particularly in the context of ageing populations and increasing healthcare costs. Technology has the potential to address these gaps by enhancing insurance inclusiveness and accessibility.
This panel will explore how technological advancements are leveraged to narrow health and retirement protection gaps. It aims to highlight the imperative to drive for insurance inclusiveness in the face of growing gaps and the role technology can play in creating inclusive insurance solutions that cater to the needs of diverse populations.
Moderator: Craig Thorburn, Consultant, GAIP
Speakers:
- Gregory Chia, Group Director of Retirement Income, Central Provident Fund Board, Singapore
- Joey Zhou, Associate Professor, Nanyang Business School
- Sachin Shah, General Manager of Emerging Markets, Asia, Manulife
- Matthias Range, Executive Director, A2II
5. Of NatCat Protection Gaps – Risk Reduction vs. Risk Financing (11.45am – 12.30pm)
Natural catastrophe (NatCat) protection gaps present significant challenges for many countries, especially those prone to disasters. This panel will focus on the comparative efficiency of risk reduction measures versus ex-ante risk financing strategies, including insurance vs. ex-post risk financing.
It will examine the role of prevention, mitigation, and adaptation efforts in reducing disaster impacts and the effectiveness of various risk financing tools such as insurance, contingent capital, and reserves. The panel will also discuss integrating these approaches to create a comprehensive risk management strategy that enhances resilience and minimises economic losses from natural catastrophes.
Moderator: Yao Lei, Associate Director of GAIP
Speakers:
- Benedikt Signer, Executive Director, SEADRIF & Senior Advisor, Global Finance Group, University of Oxford
- Lubomir Varbanov, Managing Director and Head of Public Sector Solutions for Asia Pacific, Swiss Re
- Shaun Wang, Chairman of Risk Lighthouse
6. Lunch (12.30pm – 2.15pm)
7. Announcement of Partnership (2.15pm – 2.30pm)
8. The enabling environment to address protection gaps – what do we need? (2.30pm – 3.30pm)
Creating an enabling environment is crucial for effectively addressing protection gaps. This involves ensuring stakeholders have adequate awareness of risks, risk management tools,how insurance plays a critical role, and the right skills and talents to implement comprehensive risk mitigation strategies.
This panel will discuss the key components of an enabling environment and highlight the importance of cross-sector collaboration, capacity building and talent development, and the role of government, industry, and academia in fostering a supportive environment for addressing protection gaps.
Moderator: Conor Donaldson, Head of Implementation and Assessment, IAIS
Speakers:
- Apoorv Dabral, Senior Vice President, Public Sector, Guy Carpenter
- Somxay Keovandy, Division Director, Ministry of Finance, Lao PDR
- Xin Chang, Associate Dean (Research), Nanyang Business School
- Damayanthi Fernando, Director General, Insurance Regulatory Commission of Sri Lanka
9. Afternoon tea/coffee break & networking (3.30pm – 4.00pm)
10. Laying the foundation to address protection gaps (4.00pm – 5.00pm)
Addressing protection gaps requires a solid foundation built on appropriate data, advanced risk modelling capabilities, and the right tools and resources for stakeholders leveraging such data and risk modelling.
This panel will explore the importance of data-driven decision-making and risk modellingtools in identifying and addressing protection gaps. The panel aims to highlight the need for robust data and modelling frameworks and tools and the right talents and skill sets within the environment, which are the first steps in developing effective strategies to close protection gaps and improve overall risk resilience.
Moderator: Ellen Yong, Chief Operations and Finance Officer, SEADRIF
Speakers:
- Alastair Norris, Technical Lead, Risk Modelling Steering Group, IDF
- Iwan Pasila, Deputy Commissioner of Insurance, Guarantee Institution, and Pension Fund Supervision, OJK Indonesia
- Rupert Roberts, Head of Southeast Asia for Corporate Risk and Broking, WTW
- Rowan Douglas, CEO, Climate Risk and Resilience, Howden
11. Closing remarks (5.00pm – 5.10pm)
John Maroney, CEO of GAIP
12. Cocktail (5.30pm)
Standing cocktail reception for Summit participants.
*This programme is tentative and subject to change
Who Should Attend
This summit is designed for a diverse audience of stakeholders in the insurance and financial services industry, including:
- Insurance Executives and Professionals: Leaders and practitioners from the insurance ecosystem looking to leverage the opportunities and address the challenges related to protection gaps in Asia.
- Policymakers and Regulators: Government officials and regulatory bodies involved in shaping the insurance landscape and policies to address protection gaps in Asia.
- Academics and Researchers: Scholars and researchers focused on insurance, risk management, and related fields who are interested in the latest studies and developments.
- NGOs and Development Agencies: Organizations working on socio-economic development, protection gaps, disaster risk reduction, and climate change adaptation.
Why Attend
Attending the GAIP Summit 2024 offers numerous benefits, including:
- Insightful Keynotes and Discussions: Gain valuable insights from industry leaders and other expert panelists on protection gaps' current landscape and future.
- Focus on Asia: Understand the unique challenges and opportunities in addressing protection gaps in Asia, with discussions tailored to the region's specific needs and contexts.
- Networking Opportunities: Connect with industry peers and other experts during networking sessions, cocktail receptions, and dinner.
- Comprehensive Agenda: Participate in a well-rounded program that covers a wide range of topics, from climate change impacts and health insurance gaps to the enabling environment for addressing these gaps and the foundational role of data and risk modelling.
Grand Copthorne Waterfront Hotel Singapore
392 Havelock Rd, Singapore 169663
Photos:
Overview
The 2024 Global Asia Insurance Partnership (GAIP) Summit, a collaboration between GAIP and the Insurance Development Forum (IDF), brought together key stakeholders to tackle one of the most pressing issues in the insurance industry: protection gaps. Over two days, esteemed speakers explored the challenges and opportunities in closing these gaps, which manifest in areas such as natural disasters, health, longevity, and climate resilience. This gathering emphasised the need for cross-sector collaboration, innovative solutions, and actionable strategies to build a more inclusive and resilient insurance ecosystem across Asia and beyond.
The Summit began with a closed-door roundtable where senior leaders from GAIP's Anchor Partners, Asia's regulatory bodies, and international organisations, including the International Association of Insurance Supervisors (IAIS) and Asian Development Bank (ADB), discussed insurance market development in Asia to support the narrowing of Asia's protection gaps. [link]
GAIP's Chairman, Dr. Yoshihiro Kawai, officially opened the public sessions, where he emphasised the critical role of dialogue between regulators, industry, and academia in addressing Asia's substantial protection gaps. He highlighted that Asia, despite being the largest and most disaster-prone region in the world, remains underrepresented in global insurance discussions. Dr. Kawai emphasised the importance of fostering a public-private-academic partnership to amplify Asia's voice and address challenges such as regulatory fragmentation and low insurance penetration. By creating platforms for collaboration, such as GAIP, he called for collective efforts to narrow the widening protection gap, which, in some cases, leaves up to 90% of risks uninsured in the region.
IDF Secretary General, Ms. Ekhosuehi Iyahen, gave the keynote address for the Summit. She reflected on the shared purpose of addressing protection gaps and the unique opportunity presented by the Summit to foster meaningful collaboration. Ms. Iyahen articulated the IDF's mission of optimising insurance and risk management capabilities to drive resilience and achieve sustainable development goals. Acknowledging the widening protection gaps across Asia, she stressed the urgency of transitioning from awareness to action and engaging diverse stakeholders, including policymakers, insurers, and development organisations. She urged participants to challenge assumptions, explore innovative solutions, and align efforts to ensure insurance plays its foundational role in resilience and prosperity.
Throughout the Summit, panels delved into diverse and critical topics, beginning with the socio-economic impacts of protection gaps and their implications for underserved communities. Discussions highlighted Asia's stark natural catastrophe protection gap, estimated at 91%, and the pressing need for innovative, risk-informed approaches to resilience building. Public-private partnerships emerged as a cornerstone for addressing these gaps, particularly in disaster-prone areas. Panellists also explored the challenges of Asia's regulatory diversity, emphasizing the importance of harmonizing frameworks to enable cross-border insurance solutions.
Panels further examined the intersection of health and longevity protection gaps, stressing the role of technological advancements in expanding access to insurance and enhancing affordability. The discussions extended to climate change's impact on risk landscapes, with emphasis on parametric insurance as a practical solution. Capacity-building, data standardization, and fostering public trust in insurance were highlighted as foundational steps toward achieving sustainable outcomes. The Summit concluded with a forward-looking dialogue on the importance of integrated strategies, including risk reduction, financing, and collaboration, to create long-term resilience in the region.
The 2024 GAIP Summit demonstrated the power of collective action and innovative thinking in addressing protection gaps. By fostering dialogue among diverse stakeholders and presenting actionable strategies, the Summit laid a strong foundation for building a more resilient and inclusive insurance ecosystem. The insights shared during these discussions underscore the urgent need for continued collaboration, investment in data and technology, and a commitment to reducing vulnerabilities in an increasingly uncertain world.
Closed-door roundtable
Driving insurance sector development in Asia to support the narrowing of Asia's protection gaps
The GAIP Summit 2024 commenced with a closed-door roundtable discussion which brought together senior leaders from regulatory bodies, the insurance industry, and international organisations to address Asia's significant and growing protection gaps and discuss pathways to develop the region's insurance markets sustainably. This discussion focused on the role of regulatory harmonisation, successful collaborations, and where we should prioritise in seeking collaborations in the region.
The Importance of Regulatory Harmonization
Participants highlighted regulatory harmonisation as a critical enabler of market efficiency and resilience. By aligning frameworks across jurisdictions, insurers can streamline compliance processes, reduce administrative costs, and improve access to cross-border operations. Such alignment also facilitates the sharing of best practices and the adoption of international standards, contributing to a more cohesive and robust insurance ecosystem.
However, harmonisation faces several challenges. The diversity of regulatory maturity, market conditions, and economic structures across Asia complicates efforts to create unified frameworks. Geopolitical instability and fragmentation further exacerbate the difficulties, underscoring the need for incremental and carefully managed approaches. In addition, participants stressed the need for harmonisation discussions to balance international standards and broader regional alignment with local market sensitivities.
A key proposal was the establishment of recurring regional forums linked to platforms such as ASEAN summits to foster sustained dialogue among stakeholders. These forums would provide a structured space for regulators and industry representatives to discuss harmonisation priorities, exchange experiences, and address common challenges.
Public-Private Partnerships in Closing Protection Gaps
Public-private partnerships (PPPs) were recognised as essential for addressing protection gaps, particularly in disaster-prone areas. Parametric insurance was identified as an effective tool in this context, offering rapid payouts based on predefined triggers such as weather conditions or seismic activity. This approach ensures timely financial relief for affected communities and reduces the administrative burden associated with traditional claims processing.
Despite its potential, scaling parametric insurance solutions across the region remains challenging. Participants noted the complexity of aligning the interests of various stakeholders, including governments, insurers, reinsurers, and development banks. Financing such initiatives was highlighted as a particularly sensitive issue, with questions around cost allocation and equitable distribution of funds requiring careful consideration.
The importance of transparent governance structures was repeatedly emphasised. Participants stressed the need for clear agreements on roles and responsibilities among stakeholders to ensure the long-term sustainability of PPPs. Additionally, integrating such solutions into broader disaster risk management frameworks was identified as a way to maximise their impact.
The Role of Trust and Communication
Trust and effective communication were identified as foundational elements for driving the development of Asia's insurance markets. Participants agreed that early engagement between regulators and industry stakeholders is essential to building mutual understanding and ensuring that policies are practical and aligned with market realities.
Capacity building for regulators was seen as a priority, especially in emerging markets where supervisory bodies often lack the resources and expertise needed to oversee complex and rapidly evolving insurance sectors. Access to training programs, analytical tools, and peer-to-peer learning opportunities was suggested as a means to enhance regulatory capabilities.
Participants also discussed the importance of ongoing, structured dialogue to maintain trust and alignment. Regular communication channels between regulators and the industry would help identify and address emerging risks, resolve potential conflicts, and foster a cooperative environment for market development.
Market Development Initiatives
Examples of successful market development initiatives were shared to illustrate how collaboration and innovation can address protection gaps. One initiative involved a collaborative approach to implementing regulatory changes, where stakeholders were engaged through structured roadmaps and steering committees. This method provided clarity, fostered alignment, and ensured smoother transitions during implementation.
Another example highlighted a multi-layered insurance system designed to manage catastrophic risks. This system integrated private insurers, a pooled insurance fund, and government support, demonstrating the potential for risk-sharing models to enhance resilience. However, challenges such as limited consumer participation in certain segments underscored the need for greater public awareness and education to improve uptake.
Participants also pointed to innovations targeting underserved populations, including microinsurance products that cater to low-income households. These products have shown promise in improving financial inclusion and resilience, particularly in vulnerable communities.
The Road Ahead – What Should Be Prioritized
The session concluded with a forward-looking discussion on key priorities for addressing Asia's protection gaps and advancing the development of the region's insurance markets. Participants emphasised the importance of establishing recurring forums to sustain dialogue and collaboration among stakeholders. By leveraging existing regional platforms, such as ASEAN summits, these forums could reduce communication barriers and provide a consistent space for addressing shared challenges.
Data availability and transparency were identified as critical enablers for market development. Improved data quality would enhance risk assessment, pricing accuracy, and decision-making processes, enabling insurers to better serve diverse markets.
Participants also stressed the need for scalable solutions that align public and private interests. Scaling successful initiatives, such as parametric insurance models, requires a concerted effort to address financing complexities, governance barriers, and stakeholder alignment.
The roundtable reinforced the urgency of addressing Asia's protection gaps through collaborative and innovative approaches. By prioritising regulatory harmonisation, strengthening public-private partnerships, building trust, and focusing on sustainable market growth, stakeholders can create a more resilient and inclusive insurance ecosystem across the region.
Panel 1 – Protection Gaps – Just a Buzzword?
The first panel of Day 1 at the 2024 GAIP Summit explored the multifaceted issue of protection gaps and their far-reaching socio-economic implications. Titled "Protection Gaps: Just a Buzzword?", the discussion set the tone for the Summit by critically analysing the scope, urgency, and solutions needed to address these gaps, particularly in regions like Asia where insurance penetration remains low and vulnerabilities are pronounced.
The session began with panellists defining protection gaps as the disparity between economic losses caused by risk events and the proportion covered by insurance or other financial mechanisms. These gaps are not confined to any single sector but span critical areas such as healthcare, climate adaptation, disaster resilience, and retirement security. The panellists emphasised that these gaps are symptomatic of systemic vulnerabilities and have profound implications for economic stability and social equity. Addressing them, they argued, is both an economic necessity and a moral imperative, particularly given their disproportionate impact on marginalised and underserved communities.
A discussion point of the panel was the evolving role of insurance supervisors in mitigating protection gaps. Traditionally, supervisory mandates focused on protecting existing policyholders, but panellists noted a significant shift toward broader societal objectives. These include fostering financial inclusion, promoting resilience, and creating regulatory environments that enable innovation. The International Association of Insurance Supervisors (IAIS) is advocating for these expanded roles. Their call-to-action report on natural catastrophe protection gaps was mentioned as a guiding framework, detailing measures to incentivise risk prevention, expand financial literacy, and promote collaborative regulatory practices.
Public-private partnerships were identified as a cornerstone of efforts to bridge protection gaps. Panellists emphasised the transformative potential of collaboration between governments, insurers, and international organisations. By pooling resources, expertise, and networks, these partnerships can deliver scalable solutions tailored to the unique challenges of specific regions. Successful initiatives, such as risk pooling arrangements and collaborative disaster risk management frameworks, were cited as evidence of the power of collective action. However, panellists acknowledged that these partnerships require sustained commitment, effective governance, and clear communication to achieve lasting impact.
Throughout the discussion, the importance of ensuring that insurance products are both accessible and affordable was repeatedly stressed. Panellists highlighted the need to design solutions that prioritise availability while addressing barriers that limit access to underserved communities. Simplifying insurance offerings and improving transparency in pricing and claims processes were noted as critical steps to fostering trust and encouraging broader adoption. The discussion also touched on the role of blended approaches and coordinated efforts to address these systemic challenges incrementally, drawing on frameworks that encourage structured, step-by-step problem-solving.
The role of data and technology in narrowing protection gaps received considerable attention. Panellists discussed how granular data and advanced risk modelling tools could inform policy decisions and improve product design. Examples included the use of probabilistic models for flood risk in Costa Rica and regional heat mapping to identify vulnerabilities in Europe. These tools enable stakeholders to prioritise investments and allocate resources effectively, ensuring that interventions are both impactful and efficient. Panellists also emphasised the importance of data sharing and standardisation to enhance coordination and trust across the insurance value chain.
The panel concluded with a forward-looking discussion on the systemic and collaborative approach needed to address protection gaps. Panellists called for alignment across sectors, sustained innovation, and long-term commitments from all stakeholders, including regulators, insurers, governments, and academia. They stressed that addressing protection gaps is not solely about mitigating financial risks but about fostering resilience, enhancing inclusivity, and safeguarding livelihoods in an increasingly complex and interconnected world. This foundational discussion set a compelling tone for the Summit, underscoring the urgency of the issue and the collective action required to tackle it effectively.
Panel 2 – Tackling Asia's Protection Gaps
The second panel of Day 1 at the 2024 GAIP Summit focused on tackling Asia's substantial protection gaps, exploring the region's unique challenges and potential solutions. The session highlighted the complexities of addressing these gaps, given Asia's low insurance penetration rates, vulnerability to disasters, and diverse socio-economic landscape.
The discussion began with an analysis of Asia's protection gap statistics, underscoring the magnitude of the issue. Emerging Asia alone accounts for 70% of the global protection gap, with the region facing significant shortfalls in natural catastrophe coverage, health insurance, and mortality protection. While some progress has been made in reducing mortality gaps, both the health and natural catastrophe protection gaps have widened in recent years. These figures served as a sobering reminder of the critical need for targeted interventions to address these vulnerabilities.
Panellists emphasised the importance of risk-informed decision-making as a foundational strategy for narrowing protection gaps. They discussed how probabilistic modelling could be employed to assess risks, quantify economic impacts, and prioritise investments in risk reduction. Such tools enable stakeholders, particularly governments, to make informed decisions that maximise the economic and social benefits of resilience-building efforts. The need for these models to become public goods was highlighted, allowing them to be widely used to guide policy and investment decisions.
The role of public-private partnerships (PPPs) in bridging protection gaps was another key focus of the panel. Collaboration between governments, insurers, and development organisations was identified as essential for creating scalable, region-specific solutions. Panellists highlighted how blended finance models and integrated frameworks can pool resources and expertise to address diverse risks, from natural disasters to agricultural vulnerabilities. However, it was noted that many existing initiatives face challenges with scaling, requiring more adaptive and cohesive strategies to meet regional needs.
Consumer behaviour and trust were central to the discussion. Panellists acknowledged that decisions to forego insurance are often rational, driven by cost-benefit analyses and expectations of government bailouts. In many cases, consumers prioritise immediate needs over long-term financial protection, particularly in lower-income groups. This tendency was linked to a broader lack of awareness about the indirect benefits of insurance, such as its role in preventing economic shocks and maintaining social stability. Simplifying insurance products, improving transparency in pricing, and making the value of coverage more evident were proposed as strategies to address these challenges.
Regulatory frameworks were highlighted as both a barrier and an opportunity for scaling insurance solutions across Asia. The diversity of regulations within the region often complicates the development of cross-border solutions, limiting the ability of insurers to operate efficiently. Panellists called for greater harmonisation of policies to align incentives, enhance market stability, and make insurance more accessible.
The panel also explored the broader socio-economic benefits of insurance, emphasising its potential to drive sustainable development. By combining financing and insurance, stakeholders can create comprehensive frameworks that address both protection and financing gaps. This integrated approach enables the development of infrastructure, health systems, and community-level resilience initiatives that contribute to long-term economic stability and growth. Panellists stressed that such efforts require continuous dialogue with policymakers to build capacity and integrate insurance into national resilience strategies.
The session concluded with a call for action to prioritise collaboration, innovation, and capacity building in addressing Asia's protection gaps. Panellists agreed that while the challenges are immense, the opportunities for meaningful progress are equally significant. By leveraging data, fostering partnerships, and simplifying access to insurance, stakeholders can work towards narrowing protection gaps and building a more resilient and inclusive Asia.
Panel 3 – Of Protection Gaps the climate and where insurance fits in
The first panel on Day 2 of 2024 GAIP Summit brought to light the intricate challenges posed by escalating climate risks and their effects on economic and social resilience. Panellists explored the critical need for multi-sector collaboration, innovative approaches to insurance, and strategies to close the growing protection gaps in vulnerable regions.
The discussion began with an acknowledgement of the rising frequency and severity of climate-related disasters, such as wildfires, extreme heat, and typhoons, and how these events are straining the limits of traditional insurance models. One panellist highlighted that the increasing unpredictability of these events is exacerbating the affordability and availability of insurance, particularly in high-risk areas. This scenario presents the imminent risk of reaching the "insurability tipping point," where coverage becomes inaccessible due to prohibitive costs or reduced insurer willingness to underwrite.
A key theme was the necessity of trust and transparency in data sharing, which is often fragmented and incomplete, particularly in emerging markets. For example, one speaker pointed out how regulators in the United States are grappling with the lack of comprehensive climate risk data, which hampers their ability to implement informed, fact-based policies. This limitation is mirrored in parts of Asia, where the absence of robust data similarly hinders private insurers' efforts to set appropriate pricing or develop tailored products.
The discussion highlighted several examples of how insurance can contribute to climate resilience. A notable case involved California's approach to disaster mitigation, which includes community-wide programs supported by regulatory mandates. Through these programs, towns are provided with clear guidelines for reducing collective risks, such as roof replacements to withstand hurricanes. The panellist explained that these measures not only lower risks across entire communities but also attract insurers back to regions previously considered uninsurable. Another example came from Japan, where insurers are offering risk advisory services to clients. One panellist described a case in which a company provided elevation assessments to facilities prone to typhoon flooding, enabling the client to make preventive adjustments that reduced future losses. Similarly, the insurance industry is addressing concerns about electric vehicle adoption by offering guarantees on electric vehicle batteries, encouraging consumers to transition to sustainable practices without fear of costly failures.
Panelists noted that in many developing countries, the insurance market remains nascent, with low penetration rates. A speaker highlighted that governments play an essential role in these markets, as private insurers alone cannot shoulder the risk or build the necessary infrastructure. Public-private partnerships were suggested as a mechanism to develop these markets, with governments stepping in to provide initial support and mitigate risks for private insurers.
Education and public awareness emerged as recurring themes throughout the discussion. One speaker shared insights from a parametric insurance program in India, where women working outdoors received automatic payouts when extreme heat thresholds were reached. Initially funded entirely by an NGO, the program demonstrated its value during periods of high temperatures, prompting participants to pay part of the premium in subsequent phases. This evolution highlighted how community-driven education and experience with insurance can build trust and increase uptake.
The panel also explored the broader economic implications of unaddressed protection gaps. One panellist explained that when communities become uninsurable, they often become uninvestable, leading to a cascading series of economic challenges. Without insurance, property values decline, local governments lose tax revenue, and funding for essential services such as schools and libraries is compromised. This dynamic underscores the critical role of insurance not just as a financial safety net but also as a stabilising force for communities.
Another point of discussion was the potential of blended finance to address protection gaps and climate challenges. One panellist described a project involving a hydroelectric plant in Nepal, which struggled to attract investment due to earthquake risks. The introduction of parametric insurance alleviated investor concerns, enabling the project to move forward and provide clean energy to millions. Such examples illustrate how insurance can de-risk investments, making them viable in regions with significant climate challenges.
Throughout the session, panellists repeatedly emphasised the need for the insurance sector to step into new roles. Beyond financial protection, insurers were urged to act as educators, advisors, and influencers, shaping public behaviour and driving policy changes.
The panel concluded with reflections on the path forward. Panellists stressed that addressing protection gaps and climate risks requires not only innovation within the insurance industry but also concerted efforts to bridge silos between stakeholders. A call was made for regulators and insurers to prioritise transparency and data sharing, as well as to develop scalable solutions tailored to the unique needs of different regions.
Panel 4 – Of Health and Longevity – Where Technology Comes In to Address the Gaps
This panel addressed the significant challenges posed by health and longevity protection gaps across Asia. The session highlighted the intersection of ageing populations, rising healthcare costs, and inadequate retirement systems, offering comprehensive insights into how these challenges can be mitigated through research, innovation, and public-private collaboration.
Panellists began by emphasising the scale and complexity of the region's health and retirement protection gaps. Health-related gaps alone account for nearly 50% of the total protection gap in Asia, underscoring the urgency of addressing these issues. The region's ageing populations and declining birth rates further exacerbate these gaps. For example, Japan, which became a “super-aged” society in 2006, now has over 21% of its population aged 65 or older. Singapore is expected to reach this milestone within two years, and China within eight years. These demographic shifts place immense pressure on public pension and healthcare systems, with China's public pension fund projected to run out of money by 2035 without significant reforms. Addressing health and retirement challenges in these contexts is critical to safeguarding economic stability and individual well-being.
The panel underscored the pivotal role of research in informing policy and industry responses. The NTU-GAIP Retirement Protection Gap Study was highlighted as an initiative aimed at quantifying retirement protection gaps and identifying best practices. This collaborative effort, involving universities in China, Japan, Singapore, and Indonesia, combines qualitative and quantitative methods to analyse the adequacy of retirement solutions. Early findings from the study reveal significant variations in how countries address retirement security, pointing to the need for tailored approaches based on local socio-economic conditions. The study aims to guide policymakers and insurers in developing sustainable strategies to close these gaps.
The intersection of healthcare and retirement financing emerged as a particularly pressing issue. Rising healthcare costs often deplete retirement savings, leaving individuals vulnerable in their later years. Singapore's Central Provident Fund (CPF) system was presented as a model that integrates retirement, healthcare, and long-term care funding. Programs like CPF Life, MediShield Life, and CareShield provide comprehensive coverage for Singaporeans, addressing key risks such as severe disability and high medical bills. Additionally, CPF has made strides in ensuring inclusivity by requiring gig workers to contribute. For those nearing retirement age, it has schemes like the Matched Retirement Savings Scheme, which offers dollar-for-dollar matching for voluntary contributions. These initiatives demonstrate how integrated systems can simultaneously address multiple aspects of financial security.
Public-private partnerships were identified as essential to bridging protection gaps. Panellists emphasised that government programs alone cannot meet the growing needs of ageing and underserved populations. Collaboration with insurers and other private sector entities was presented as a way to develop scalable, affordable solutions. Blended financing models that combine public and private resources were cited as effective mechanisms for addressing diverse risks. Tailored insurance products designed for informal sector workers and gig economy participants further exemplified how partnerships can create innovative and inclusive solutions.
Innovation through technology was another focal point of the discussion. Panellists highlighted how digital tools and mobile applications are expanding access to insurance and promoting financial literacy. For instance, financial education programs like Manulife's Peso Smart in the Philippines teach young students about savings, insurance, and financial health, fostering long-term awareness and trust. Similarly, programs like AIA Vitality and ManulifeMove incentivise healthier lifestyles by offering rewards and potential insurance discounts, aligning personal health goals with financial incentives. Additionally, advancements in preventative healthcare technologies, such as early cancer detection tools, were highlighted as crucial for reducing long-term healthcare costs and improving outcomes.
The panel also explored the challenges of serving vulnerable populations, including those with limited financial literacy and volatile incomes. In many developing regions, out-of-pocket health payments dominate, leaving individuals unable to access adequate care. Flexible insurance models, such as “bite-sized” policies that allow informal workers to pay premiums when they have income, were presented as effective solutions. These models address the challenges of irregular earnings while ensuring that coverage remains affordable and accessible. Raising awareness and improving delivery systems to achieve economies of scale was also emphasised.
Cross-country collaboration and knowledge sharing were highlighted as critical to addressing these challenges. Panellists stressed the importance of fostering dialogue among stakeholders, including governments, insurers, and academia, to share insights and coordinate efforts. By leveraging innovation, strengthening partnerships, and focusing on inclusive solutions, stakeholders can work towards building a more resilient and equitable future for Asia's ageing populations.
The session concluded with a call to action to prioritise sustained collaboration, innovation, and capacity building. Panellists agreed that addressing health and longevity protection gaps requires a holistic approach integrating public and private efforts. By doing so, Asia can better prepare for its demographic transitions and ensure that its populations are equipped to face the challenges of ageing with dignity and security.
Panel 5 – Of NatCat Protection Gaps – Risk Reduction vs. Risk Financing
This panel discussed the complex interplay between risk reduction and risk financing in managing natural catastrophe (NatCat) protection gaps. The discussion focused on the region's growing vulnerabilities to natural disasters, the financial impacts of these events, and the strategies necessary to build resilience and close the existing gaps.
Panellists emphasised the magnitude of NatCat protection gaps in Asia, which accounts for a significant portion of the global disaster protection shortfall. The frequency and severity of natural disasters in the region are increasing due to climate change, with far-reaching consequences for lives, livelihoods, and economies. Asia's developing nations are disproportionately affected, as their lower insurance penetration leaves governments, businesses, and communities exposed to devastating financial shocks. The panel highlighted that addressing this gap requires not only increased insurance coverage but also enhanced risk awareness and infrastructure investments.
A central theme of the discussion was the integration of risk reduction measures and risk financing tools. Panellists stressed that risk reduction—such as investment in resilient infrastructure, effective land-use planning, and community-level mitigation efforts—is essential to minimising the impact of disasters. Examples included improved building codes and the establishment of early warning systems for extreme weather events. Concurrently, risk financing mechanisms like insurance, catastrophe bonds, and contingent credit facilities play a crucial role in ensuring that financial resources are available for recovery and rebuilding. Panellists highlighted that integrating these approaches is essential for achieving sustainable resilience.
The discussion also explored the shift from reactive, post-disaster funding to proactive, pre-arranged financing solutions. Pre-arranged mechanisms such as parametric insurance and risk pooling arrangements were highlighted as effective ways to provide timely and predictable financial support following disasters. Risk pooling initiatives have enabled countries to collectively manage their financial exposure to disasters, reducing their reliance on international aid. However, panellists noted that these solutions require clear frameworks for risk ownership and accountability, particularly in regions with diverse socio-economic and governance contexts. Establishing well-defined roles and responsibilities across international, national, and local stakeholders was seen as critical to the success of such mechanisms.
Collaboration emerged as a recurring theme, with panellists emphasising the importance of partnerships between governments, the private sector, and international organisations. Examples of successful collaborations included initiatives where governments worked with insurers to develop accessible disaster insurance products for vulnerable communities. Panellists discussed how these partnerships could also support the development of hazard maps and risk modelling tools, providing valuable data to inform risk mitigation strategies. By leveraging the strengths of different stakeholders, these partnerships can address systemic barriers to resilience and ensure the scalability of solutions.
Panellists discussed the role of data and technology in addressing NatCat risks. The availability of high-quality, granular data was identified as a critical enabler for effective risk assessment, policy development, and decision-making. For example, satellite data and advanced risk modelling have been used to assess flood risks and guide urban planning in high-risk areas. While significant volumes of data are being generated, panellists noted that the challenge lies in translating this information into actionable insights for policymakers and communities. Transparency in the use of data and the pricing of insurance products was also highlighted as a means to build trust and encourage broader participation in risk financing initiatives.
Education and awareness were identified as pivotal elements in fostering a culture of resilience. Panellists stressed the need for public education campaigns to raise awareness about disaster risks and the benefits of proactive risk management. Simplifying insurance products and improving their accessibility were highlighted as strategies to reach underserved populations. The potential of innovative solutions, such as parametric insurance products tailored to specific local hazards, was also discussed as a way to address unique community needs effectively. Making risk information accessible to the public was emphasised as crucial for enabling individuals and communities to make informed decisions about disaster preparedness.
The session concluded with a call for greater alignment and collaboration among stakeholders. Panellists urged governments, insurers, and development organisations to work together to develop integrated approaches that combine risk reduction, financing, and education. They stressed that closing the NatCat protection gap will require sustained efforts, innovative solutions, and a commitment to building long-term resilience. By fostering innovation, improving access to data, and prioritising community engagement, stakeholders can address the growing NatCat protection gap and help build a more resilient future for vulnerable communities across Asia.
Panel 6 – Creating an Enabling Environment to Close Protection Gaps
This panel delved into the crucial need for an enabling environment to close protection gaps across Asia. Panellists, representing the public sector, regulators, industry, and academia, examined the systemic barriers and opportunities in fostering a supportive ecosystem for risk management and resilience. The session underscored the multi-dimensional nature of protection gaps and the importance of collaborative, sustained efforts to address them.
The discussion began by contextualising the protection gaps in Asia, particularly in disaster and health insurance. Panellists pointed out that these gaps are reflective of broader socio-economic vulnerabilities and systemic inefficiencies, which make many communities and governments reliant on reactive measures rather than proactive planning. Despite ongoing initiatives, panellists stressed that systemic challenges, including regulatory fragmentation, affordability concerns, and public distrust in insurance, continue to impede progress.
The critical role of collaboration among governments, insurers, regulators, and academia was also discussed. Panellists emphasised that multi-stakeholder partnerships are indispensable for developing scalable and sustainable solutions to protection gaps. Governments, in particular, were called upon to lead these efforts by fostering cross-sector collaboration and ensuring that regulatory policies are aligned with innovative insurance mechanisms.
Political will and robust regulatory frameworks were highlighted as the foundation for creating an enabling environment. Panellists noted that without sustained political commitment, scaling and sustaining insurance mechanisms becomes an uphill task. Effective regulation must not only promote innovation but also include safeguards to protect financial sustainability and ensure accountability. Panellists cited Sri Lanka's National Natural Disaster Insurance program as an example of how unsustainable premiums and fraudulent claims can undermine such initiatives, underscoring the need for continuous monitoring and oversight.
Addressing societal misconceptions about insurance emerged as a critical focus of the discussion. Panellists observed that in many communities, insurance is either misunderstood or mistrusted, with people often expecting government bailouts during crises. This perception erodes the perceived value of insurance, making it less likely for individuals and businesses to invest in protection. Public education campaigns were proposed as a means to build trust and enhance understanding of the socio-economic benefits of insurance. Simplifying insurance products, improving transparency in terms and conditions, and demonstrating the tangible benefits of insurance coverage were emphasised as key strategies to build consumer confidence and encourage adoption.
The affordability of insurance and regional disparities in access were also discussed. Vulnerable populations, particularly those in rural or low-income areas, often face significant barriers to accessing affordable insurance products tailored to their specific needs. Panellists proposed tiered pricing models, public subsidies, and innovative distribution channels as potential solutions to address these barriers. However, they also cautioned that poorly designed subsidies could distort the market and hinder long-term sustainability. India's Pradhan Mantri Fasal Bima Yojana, a large-scale crop insurance program, was presented as a case study demonstrating how public-sector interventions can successfully address affordability while scaling coverage. However, technical capacity gaps, data shortages, and societal distrust in insurance systems remain key challenges.
The role of academia in creating an enabling environment was another key point of discussion. Universities were called upon to contribute through interdisciplinary research, fostering innovation and talent development. Panellists emphasised the need for integrating advanced data analytics, climate science, and risk management principles into insurance education to prepare future leaders to tackle emerging risks. Collaborative research efforts, particularly those focused on improving climate risk modelling and enhancing data availability in ASEAN countries, were identified as crucial for advancing risk assessment and policy development.
Panellists also explored the importance of data and technology in bridging protection gaps. High-quality, granular data is vital for effective risk assessment and product design, yet access to such data remains uneven across the region. Panellists highlighted the need for open data platforms and public-private collaborations to enhance data sharing and improve decision-making processes. Technology-driven innovations, such as satellite imagery for hazard mapping and digital platforms for policy distribution, were recognised as transformative tools for expanding access and enhancing efficiency.
The session concluded with actionable recommendations for creating an enabling environment to close protection gaps. Panellists underscored the importance of fostering collaboration across sectors, developing sustainable regulatory frameworks, and addressing affordability and accessibility barriers. Public awareness campaigns, leveraging academic research, and multi-stakeholder partnerships were emphasised as vital components of this effort. The panel's insights reinforced the urgent need for systemic change, innovation, and collective action to overcome the challenges of protection gaps and build a more inclusive and resilient future for Asia.
Panel 7 – Laying the Foundation to Address Protection Gaps
The final panel of the 2024 GAIP Summit focused on “Laying the Foundation to Address Protection Gaps,” concluding the two-day event with a comprehensive examination of data and risk modelling tools as essential elements in addressing Asia's substantial protection gaps. The session brought together diverse perspectives from disaster risk experts, industry veterans, and regulators, emphasising the transformative potential of data and analytics when effectively harnessed.
The discussion began with an acknowledgement of the immense scale of the protection gap in the Asia-Pacific region, reflecting the region's widespread underinsurance and exposure to natural disasters, health crises, and economic shocks. Panellists agreed that bridging this gap requires reliable, granular, and accessible data systems as a foundation for informed decision-making and effective risk mitigation strategies. They highlighted the dual challenges of identifying specific vulnerabilities in communities and ensuring that resources are allocated efficiently to address these issues.
The panellists discussed the pressing need for improved data standards and availability, highlighting the persistent challenges of fragmented, incomplete, and inaccessible data in the region. While global initiatives such as the Global Risk Modeling Alliance (GRMA) and the Risk Data Library Standards (RDLS) have made significant strides in consolidating and standardising data, much work remains to be done in terms of integrating local datasets and building capacity for their use. Open-access platforms and metadata-rich databases were identified as critical tools for enhancing data utility and ensuring widespread accessibility. Panellists stressed the importance of ensuring data interoperability and transparency to foster collaboration among stakeholders.
The importance of building local and regional capacity in risk modelling and data analysis was also emphasised. Panellists noted that while global data initiatives provide a shared vision, localised exposure and vulnerability data are essential for designing tailored and effective solutions for high-risk areas. Collaborative initiatives between governments and industry were proposed to train professionals and strengthen the ability to collect, analyse, and disseminate data to support localised risk assessment and mitigation efforts.
The role of communication in translating complex risk data into actionable insights was another key focus. Panellists discussed the challenges of presenting technical information in ways that are understandable and relevant to policymakers and the public. Effective communication strategies, they emphasised, are crucial for gaining trust, fostering buy-in, and driving the adoption of risk transfer mechanisms such as insurance. Examples included using visual tools to demonstrate risk scenarios and creating simplified narratives around the socio-economic benefits of risk management. Panellists highlighted that without clear and accessible communication, even the most robust data systems could fail to achieve their intended impact.
The panel explored the role of public-private collaboration in bridging data and protection gaps. Panellists highlighted the potential of partnerships to leverage resources, expertise, and networks for scalable solutions. For instance, collaborations between governments and insurers have led to the development of hazard maps and risk models that inform infrastructure planning and disaster preparedness. Additionally, integrating public and private datasets was presented as a way to enhance predictive modelling and improve response strategies. Panellists also noted that public-private partnerships could drive investment in innovative technologies such as satellite imagery and machine learning to further refine risk models and enhance decision-making.
Indonesia's disaster risk financing framework (DRFI) was discussed as a case study of localised efforts to address protection gaps. The framework includes the establishment of a pooled fund with a target of $30 billion by 2033, aimed at providing financial resources for disaster recovery and mitigation. Panellists noted that such frameworks must be complemented by strong regulatory oversight and community engagement to ensure their effectiveness and sustainability. Cultural challenges, such as resistance to relocation from high-risk areas, were highlighted as significant obstacles that require sensitive and inclusive approaches.
Panellists also addressed the broader implications of underinsurance and inadequate data on economic stability and resilience. They pointed out that insufficient data not only hampers the development of risk transfer mechanisms but also undermines confidence among stakeholders. To address this, they called for greater investments in data collection, sharing, and standardisation. They also emphasised the importance of aligning global data initiatives with local needs to ensure that solutions are both impactful and practical.
The session concluded with panellists discussing the importance of fostering a culture of risk awareness and education, improving access to reliable data, and leveraging technology to enhance efficiency and scalability. They called for sustained collaboration among governments, industry, and other stakeholders to develop innovative solutions that address both the immediate and long-term challenges of underinsurance.
