IIA sees “brand” new future for insurers

Despite the events of September 11, the International Insurance Association (IIA) sees a bright future for insurers, says its executive director Patrick Kenny. In anticipation of the association’s annual seminar scheduled to take place in Singapore during July, Kenny says Asia is becoming a key emerging market for insurers. The entry of China in the World Trade Organization (WTO) and the opening of its insurance market is but one sign of this.

Capital management, branding and cross-selling are among the themes shaping the industry, he says. In light of the September 11 events and the increased demand for security while the industry had begun to expand its product base, he feels there may be a retreat to “security” products in light of the terrorist attacks. Insurers will be taking a serious look at which lines they want to sell as profitability becomes the guiding force, he predicts. “The prices are going up, underwriting standards will continue to tighten, focuses will become sharper. If you’re going to spend capital in this market, you clearly want to spend it in a way that can maximize return.” Kenny hopes the seminar will be a right venue for insurers to share their insights on how to tackle this new, complex marketplace.