Asia's insurance market 'must become borderless'<\/p>\n
SINGAPORE (Reuter): Asia's insurance market must become truly
\nborderless if the region is to fulfill its potential as one of
\nthe world's most dynamic, a senior industry executive said
\nyesterday.<\/p>\n
"We have to have a borderless environment to keep the flow of
\ncapital into the region dynamic and ensure that the energy of our
\ncollective capacity is maintained," said Michael Wee, general
\nmanager of the Singapore branch of Yasuda Re.<\/p>\n
"We need to have co-operation in terms of lowering tariffs in
\nthe region and in creating the right conditions to do business,"
\nhe told Reuters in an interview.<\/p>\n
But Wee, whose company is a unit of Japan's Yasuda Fire &
\nMarine Insurance Co Ltd, said Asia would stop short of creating a
\nEuropean Union-style single passport approach to insurance
\nregulation.<\/p>\n
"Asia's integration will not be on the same lines as Europe's
\nbecause of the different stages of development of the different
\ncountries here," he said.<\/p>\n
The Association of Southeast Asian Nations (ASEAN) grouping
\nBrunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand
\nand Vietnam, has given its first indications that a single
\ninsurance market could be on its long term agenda.<\/p>\n
A meeting of ASEAN Finance Ministers in Thailand on March 1
\nissued a joint statement encouraging "ASEAN insurance regulators
\nto establish an appropriate forum for the purpose of initiating
\nand undertaking various co-operation programs".<\/p>\n
Wee said greater openness would be good for the international
\ninsurance industry: "Innovation is the result of more open
\nmarkets. Ideas germinate because of openness which is good for
\ncompanies and clients."<\/p>\n
And the pace of innovation would grow as more underwriting
\ncapital was attracted to Asia.<\/p>\n
"Innovation is related to capacity. Companies have to find new
\nways of using capacity to benefit clients as competition grows,"
\nWee said.<\/p>\n
Singapore's emergence as the insurance market's Asian hub had
\nhelped concentrate attention and capacity in one place which
\nwould attract still more over time.<\/p>\n
"If you look at the multiplier effect over time, I think the
\nemergence of one center will have been beneficial to the region
\nas a whole," Wee said.<\/p>\n
"Singapore has played an ideal role because of its geography,
\nthe way it brings international businesses together and because
\nof its openness to trade in this part of the world."<\/p>",
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"sponsor": "Okusi Associates",
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