WTW (Willis Towers Watson) is advancing its specialty services in Asia to better manage the region’s complex risk landscape, as detailed by Luke Ware, the regional head of corporate risk and broking, in a recent interview with InsuranceAsia News.
Strategic Focus on Industry Specialization
WTW aims to be Asia’s leading specialty broker, risk advisor, and client partner. To achieve this, the company is investing heavily in specialty expertise, talent acquisition, and product development. WTW plans to launch new practice groups tailored to specific industries such as technology, media and telecommunications (TMT), and food and beverage. This expansion complements its existing Singapore-based real estate practice led by Ben McCarthy and its renewable energy sector spearheaded by Sam Liu.
Ware emphasized the importance of industry-specific focus and specialized services to navigate the increasingly intricate risk environment. Clients are facing challenges like geopolitical uncertainties, climate change, and inflationary pressures, necessitating deeper specialty insights to manage these risks effectively.
Leveraging Data and Analytics
WTW is enhancing its use of risk and analytical tools to develop specialist expertise and quantify risks across various domains, including property, cyber, and climate risks. The company aims to tailor risk solutions based on factors such as geography, organizational size, financial data, and loss expectancy.
Historically, risk assessments were reactive, relying on benchmarking and historical data from industry peers. However, WTW now employs data and analytics to facilitate more proactive, forward-looking discussions about risk, including considerations for alternative risk transfer solutions like captives and structured products.
Ware highlighted the shift towards using predictive data to anticipate future risks rather than solely depending on past occurrences. This approach is crucial as the world becomes more interconnected and unpredictable risks, such as those from climate change and cyber threats, become more prevalent.
Adapting to Market Dynamics
With the rising costs and scarcity of capacity, industries, especially those like coal, need to rethink their insurance procurement strategies. Traditional methods of buying insurance on an annual basis for long-term coverage are no longer sustainable. WTW is exploring parametric and alternative risk transfer options, particularly for climate risks, through its Asia Pacific climate risk center in Singapore.
Ware pointed out that there is significant incentive for clients to invest in robust risk management practices. Brokers and intermediaries play a vital role in articulating the underlying risk management philosophies, which can lead to favorable outcomes even in a soft market cycle.
Regional Expansion and Local Expertise
WTW plans to maintain its placement functions primarily in Singapore and Hong Kong but will also expand its specialty services across different countries in Asia. This strategy aims to be closer to decision-makers and better understand local dynamics, culture, language, and regulations.
Ware noted the competitive nature of markets like China and Korea, where placing property risks can be more challenging compared to Singapore. WTW’s strategy involves building specialty businesses in various markets across Asia to balance capital pricing variances and create a comprehensive trade portfolio.
Growth in Key Markets
WTW has significantly expanded its team, hiring over 180 specialists in the past year across its insurance broking business in Asia. India and Japan are key focus areas for growth. In India, WTW has integrated its joint venture over the past 24 months and is developing a core specialty business, tapping into the country’s rapidly growing economy and underpenetrated insurance market.
In Japan, WTW is witnessing an increase in activities as the market becomes more open and clients’ risk maturity improves. The company is also planning to continue its subregional specialty build-out in South-East Asia, targeting significant growth through both organic and inorganic opportunities.
Ware emphasized that while scale is important, WTW’s primary focus remains on specialization and responsiveness to the evolving needs of its clients.
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