The Asia-Pacific insurance sector is rapidly adapting to a shifting risk landscape driven by climate change and technological advancements like AI. Insurers face challenges in pricing and policy-writing as severe weather events and biodiversity loss become more frequent. However, opportunities abound, particularly in regions like Hong Kong, where premium income has doubled, and Japan, where rising bond yields and a strong stock market bolster returns. Regulatory support is crucial in this transformation, helping insurers navigate sustainability-linked pay and improve catastrophe coverage. As AI emerges as a key tool, it offers insurers enhanced prediction accuracy and operational efficiency, despite its inherent risks. Bloomberg’s AI models and digital tools are instrumental in helping insurers manage these new challenges and optimize their portfolios.
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