Tak Lee, Greater China regional manager at RNA Analytics, explains how the actuarial modelling and risk management software provider is offering risk teams a competitive advantage, and the upcoming regulatory changes that will impact insurers in the region
What strengths does RNA Analytics offer re/insurers and the actuarial community in the Asia Pacific region?
RNA Analytics offers risk teams in Asia Pacific a competitive advantage through R3S Modeler, which is specifically designed to address the region's unique regulatory and operational needs. Optimised for IFRS 17 compliance, the software delivers exceptional accuracy and efficiency in actuarial modelling, including capabilities like nested stochastic modelling and ESG integrations.
It enables seamless automation of processes, reducing manual workloads and enhancing productivity. Tailored to local market requirements, R3S Modeler offers advanced features such as scenario testing and portfolio optimisation, enabling insurers to quickly adapt to regulatory changes and market dynamics. Supported by our expert consulting teams, the solution ensures maximum value and effectiveness for risk teams across the region.
How active is RNA Analytics in the Asia Pacific re/insurance market?
RNA Analytics has a strong and active presence in the Asia Pacific re/insurance market, particularly in Japan. We have collaborated with major insurers such as Nippon Life Insurance Company and Taiju Life Insurance Company to implement our R3S Economic Solvency Ratio Package and R3S Workflow Manager, assisting them in preparing for the economic value based solvency regulation (ESR) set to take effect in fiscal year 2025.
This partnership underscored our commitment to providing tailored solutions that address the unique regulatory and operational challenges faced by re/insurers in the region. By leveraging our expertise and tools, we empower companies to navigate complex regulatory landscapes and enhance their operational efficiency.
Are there any particular risk management-actuarial regulations that will impact Asian insurers over the next two years?
Over the next two years, Asian insurers will face key regulatory changes impacting risk management and actuarial practices. In Japan, the Economic Solvency Ratio (ESR) framework will take effect in 2025, requiring enhanced actuarial modelling and risk management.
Thailand's new risk-based capital (RBC) framework emphasises capital adequacy, while Indonesia is increasing minimum capital requirements to strengthen insurer resilience.
Additionally, stricter data protection regulations across the region such as Singapore and Hong Kong, demand robust compliance measures. These changes highlight the need for insurers to enhance their capabilities to navigate this evolving landscape effectively.
What is your outlook for the Asia Pacific insurance market? Where are the opportunity hotspots and why?
Asia Pacific's insurance market is getting more competitive, the economic conditions are getting more volatile, and the regulatory requirements, such as IFRS 17 and ICS/RBC, have imposed a brand new approach on risk analysis. Re/insurance companies were compelled to take an unprecedented new approach in their risk management and they cannot continue to use their existing risk assessment platforms that have been used in the last decade or two.
The insurance market is undergoing an era of revolution. Re/insurance companies need to develop their new platforms that are powerful and flexible with high accuracy and high efficiency to perform the very demanding data processing, and [meet] specific local requirements, with dedicated consulting support from the risk modeller vendor.
With the commitment of RNA Analytics to provide the best quality of dedicated services and tools for our very prestigious client companies in the region, we are honoured to earn the recognition of the market for this award.
