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EAIC Today Day Three 2016

News FRIDAY 14.10.16 Success in Asia depends on building trust Building client trust is a key ingredient for success in Asia, Laurence Cheng, Peak Re’s head of underwriting, told EAIC Today. “Whether it’s building trust between the reinsurer and the reinsurance buyer or between the insurer and the policyholder, this is a key to healthy growth and increasing the penetration rate,” he said. In order to do this, Cheng believes is vital to pay claims promptly—an area in which Peak Re excels, he claims. “We believe that it’s very important that we settle our claims very quickly. About 80 percent of our claims are paid in the first five working days. That proves we are doing that right—and I think that is really the key to building trust.” As an Asian-focused international reinsurer domiciled in Hong Kong, Peak Re’s growth will be predominantly driven from Asia, and the company will grow as Asia grows, said Cheng. “Different territories within Asia present different opportunities but generally we do see a lot of potential across the region. Within each region we have different types of clients and each one will need different types of solution, so it’s important to be client-focused, not offering the same solution to every client.” In order to build client relationships effectively and to fully understand their needs, Peak Re prides itself on having a truly international team. “We have 15 different nationalities working within Peak Re, and that helps us to know our market, and to tailor our solutions to fit what the client needs,” Cheng said. While he sees growth potential across the board in Asia, there are certain areas where Peak Re has particularly excelled. “These include trade credit, agriculture and microinsurance. Microinsurance life products are helping developing countries to grow, which is something we have worked on over the last couple of years.” n Laurence Cheng On-the-ground contact key to success in marine market Simon Saunders Asia is a huge region with many territories undergoing a period of significant economic expansion. This potential generates opportunities for marine re/insurers and also continues to attract new entrants into the sector, said Simon Saunders, division head, marine, aviation and transport, Barbican Insurance Group. “For Barbican, Asia is already a relatively mature market for us as we were among the first wave of Lloyd’s practitioners to invest the time to properly understand and develop business in Asia,” he said. “In recent years we have built a lot of strong relationships in Asia and it is a very interesting and important region for us.” Saunders attributes Barbican’s success to working with experienced practitioners on the ground in each of these locations. “You need that close contact with the market and an in-depth understanding of the buying nuances of each particular region. These can vary significantly from country to country, with the way in which the original business is written and the levels of risk appetite often very specific to each territory. “That is why we look to spend so much of our time working directly with companies and with brokers, so that we fully understand the business dynamic in all the territories in which we operate.” In Saunders’ view, Barbican’s greatest success in the region to date has been to establish a diverse portfolio of business, from territorial, client and product line perspectives. This stems from the strength of the relationships Barbican has built with brokers and clients across Asia. “The standing of our marine re/insurance division in the region also means that we now lead an increasing amount of the business which we write in the region. The team is well known and respected by the markets that we operate in, and we are viewed as an experienced and dependable practitioner,” he said. The reputation of the Lloyd’s market has been hugely important in opening doors, he added; but you cannot simply sit in London and expect that business to come to you. “You have to be hands-on and on-site as much as possible, building and strengthening relationships with the local markets wherever you provide re/insurance programmes. “We have been able to achieve strong sustainable growth in Asia and we will continue to focus on bolstering existing relationships and looking for areas to expand our capabilities in response to the increasing buying sophistication that we see in the region.” n 4 | EAIC TODAY | DAY 3: Friday October 14 2016 www.intelligentinsurer.com | www.bermudareinsurancemagazine.com


EAIC Today Day Three 2016
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