Dear Council Members,

We are thankful that we had a chance to get to know each other better during the recently concluded 48th AIC Meeting in Bangkok. We realized how much we missed interacting with one another. The insurance industry thrives on human interaction, so as we plan for more trips within and outside the country, what are the ways by which we can reduce our carbon footprint?

A completely new mindset will have to be adopted, including the ASEAN Insurance Industry’s responsibility when it comes to environmental protection, social, and corporate governance. During the Joint Plenary Meeting with the ASEAN Insurance regulators and the private sector on 8 December 2022, the regulators announced that they will be focusing on accelerating sustainable insurance and digitalization. Sustainable Fitch Ratings has predicted that there will be an increase in the influence of Environmental, Social and Governance (ESG) on insurers’ credit ratings as the regulators push for ESG to be taken in consideration.

The AIC Working Committees this year will strive to support the ASEAN regulators’ initiative by incorporating ESG in their programmes. The ASEAN Insurance Education Committee (AIEC) will include a module devoted to Climate Risk Management and Environmental Risk Management in the ASEAN Professional Insurance Diploma (APID) scheduled to commence in 2023. Likewise, the ASEAN Reinsurance Working Committee (ARWC) will work on the ASEAN ESG Scheme in an effort to support the renewal energy policy in this region.

Since the ASEAN region is one of the most disaster-prone areas/regions, the Working Committee on ASEAN Natural Disaster Research and Works Sharing (ANDREWS) has compiled reports on the ASEAN Sovereign Catastrophe Management and ASEAN Agricultural Insurance. These reports will enable the ASEAN member states to learn from each other in coping with the effects of climate change.

On the other hand, the ASEAN Council of Bureaux (COB) will be adopting the E-Blue Card Scheme at the borders soon with more ASEAN member states committed to the integration of the ASEAN Compulsory Motor Vehicle Insurance (ACMI) this year.

Finally, the newly formed AIC working group, the ASEAN Takaful/Retakaful Working Committee (ATRWC), is committed to support and work together with other AIC working committees in achieving ASEAN insurance sustainability and digitalization.

There is so much to look forward to and many challenges to overcome. Thank you, AIC members, for your commitment to work together to fulfil the needs and wants of ASEAN consumers for sustainable insurance products.