A Call for Decisive Action from the Market & Regulators

Dear PARIMA Members and Partners,

The Pan-Asia Risk and Insurance Management Association (PARIMA) has called for the insurers and brokers across Asia Pacific to come to the fore with the flexibility and partnership that is going to be necessary for corporations in the region to survive through the global pandemic and plan for recovery thereafter. In an unprecedented crisis, many companies are under great pressure and for some, it may be a question of survival.

In particular, PARIMA believes that insurers and intermediaries should endeavour to treat customers fairly and grant flexibility to business customers, as well individual consumers when reasonable and practical across both the timing and extent of premium payments and claims negotiations. The support of the insurance industry is going to be critical for businesses, and it is paramount that businesses has continued access to insurance and are kept well informed as we navigate these uncertain times.

PARIMA acknowledges that insurers are also under stress, and PARIMA is not in favour of regulators imposing retroactive coverage of claims that was not envisaged within contracts as this could create material solvency risks for insurers. Regulators enforcing retrospective changes would jeopardize contract certainty and erode the trust needed to build a long term and collaborative relationship, a relationship that will be essential for business in recovering from the pandemic.

PARIMA is also strongly advocating for the creation of national/regional insurance pools for future pandemic risks. Such national/regional pools have been useful in responding to other severe and widespread risks, such as terrorism, and could prove to be equally relevant in dealing with a global pandemic exposure. PARIMA is prepared to provide an expert view from risk and insurance managers to support this cause.

Best regards,