Singapore Reinsurers Handle AI’s Risks and Opportunities
Singapore’s reinsurers are assessing the risks and opportunities brought by AI, as the technology reshapes the industry. Emma Loynes, deputy chair of the Singapore Reinsurance Association (SRA), highlighted the dual nature of AI’s impact during the recent Singapore International Reinsurance Conference (SIRC).
According to Loynes, AI can enhance data quality, streamline manual tasks, speed up underwriting analysis, and improve information exchange among clients, brokers, and insurers. However, it also introduces new challenges, particularly in cyber, liability, and systemic risk areas.
In an interview Asia, Loynes stressed the need to understand these risks. She stated, “Technology, particularly AI, can help us deliver that expertise and service more effectively, but it also creates new risks that the market must understand.”
Loynes supports a balanced approach, where AI complements human expertise rather than replacing it. “The key is to use technology to solve real problems,” she said, noting its value depends on data quality, governance, and accountability.
To tackle these issues, Lloyd’s is testing solutions through its Asia Market Innovation Hub in Singapore. This initiative links market participants with Lloyd’s Lab alumni to address practical business challenges.
Glen Riddell, CEO of Berkley Re, Asia Pacific, and chair of the SRA, shared Loynes’ perspective. He sees AI as vital for reinsurers, stating, “Artificial intelligence is developing incredibly quickly, and its impact on insurance is no longer theoretical.”
Riddell asked how reinsurers can understand the AI-related risks in the business they reinsure. To tackle this, the SRA launched the Reinsurers’ AI Handbook at the SIRC, providing guidance on assessing AI-related risks in reinsurance.
Lloyd’s Asia Market Innovation Hub Tests AI Solutions
The focus is on using AI to assist in data ingestion, particularly in reinsurance submissions, claims, actuarial, and finance functions.
By leveraging AI, underwriters can more efficiently evaluate and price risk in their underwriting process. This approach aims to streamline manual tasks and improve overall efficiency in the reinsurance industry.
