KUALA LUMPUR: Malaysian Reinsurance Bhd (Malaysian Re) has released the fourth edition of its annual research publication - Malaysian Insurance Highlights 2022 (MIH 2022).
MIH 2022 is published in partnership with Faber Consulting AG, a Zurich-based research, communication and business development consultancy.
It examines the increasing relevance of the environmental, social and governance (ESG) framework and its impact on Malaysia’s insurers.
The findings of MIH 2022 are based on structured interviews with executives representing 12 Malaysian insurers, reinsurers, intermediaries, and trade associations.
President and chief executive officer Zainudin Ishak (pic) said in line with the increasing relevance of ESG this year, MIH 2022 also highlights the industry’s readiness in managing climate risks, not only as experts in risk management and transfer but also as a corporate citizen.
According to Malaysian Re, MIH 2022 finds ESG being accorded top priority in the Malaysian insurance sector, though ESG in Malaysia refers predominately to the environmental aspects of the scheme, while both the social and the governance aspects receive less attention.
“The majority of insurers affirm that they have already started to draw up their own processes to incorporate ESG in their underwriting and investment strategies as well as in their operations.
“One of the key challenges is still a lack of data and experience with the risks,” it said in a media statement.
It added that “while in some cases this may result in tighter limits or even exclusions as insurers decide to tread cautiously, the majority is moving forward covering risks related to renewables.”
Malaysian Re said with the publication of the fourth issue of MIH this year, it is positive that the industry will continue playing an important role in supporting the economy and society to mitigate the risks of climate change as well as support the country’s transition to a low-carbon economy.
Meanwhile, commenting on MIH 2021, Zainudin said the Great Malaysian Flood, the deadliest and costliest natural disaster in Malaysia’s history, struck the country in December 2021, resulting in more than RM6bil in economic losses and RM2bil in insured losses.
“As climate change takes its toll, a call for adaption is needed. To avert such disaster and limit global warming to 1.5 degrees Celsius, Malaysia signed the Paris accord in 2015, committing to reduce its greenhouse gas emission.
“The financial sector, particularly the insurance industry will play an important role in supporting the economy and society, mitigating the risks of climate change and supporting the country’s transition to a low-carbon economy,” he added. — Bernama
