Insurance leaders across Southeast Asia are calling for deeper regional coordination on climate, digital, and demographic risks. Insurance regulators and market leaders from the Association of Southeast Asian Nations (ASEAN) met in Siem Reap on Nov. 27 for the 28th ASEAN Insurance Regulators’ Meeting (AIRM) and the 51st ASEAN Insurance Council (AIC) meeting. Discussions focused on climate risk, digital transformation, and ageing populations, as well as efforts to build a more integrated regional insurance framework.
Opening the meeting, Ros Seilava, secretary of state at Cambodia’s Ministry of Economy and Finance and vice chairman of the Non-Bank Financial Services Authority, outlined his views on the sector’s role amid increasing volatility. He said the insurance industry now stands “at the front line of safeguarding economic stability” as ASEAN economies confront overlapping climate, technological, and demographic pressures.
Climate risk was a central theme in Seilava’s remarks. He said physical climate impacts are already translating into financial losses across the region. “Our region remains highly vulnerable to floods, storms, droughts, and other extreme weather events,” Seilava said, as reported by Asia News Network. He identified the ASEAN Taxonomy for Sustainable Finance as a reference point for future investment and underwriting intended to support long-term resilience.
Delegates also examined how rapid digitalisation is changing insurance operations. Carriers across ASEAN are deploying advanced analytics and artificial intelligence in underwriting, claims, and customer interactions, altering how products are priced, delivered, and serviced and raising new supervisory questions. “These technologies bring concerns related to data privacy, cyber threats, and responsible use,” Seilava said. In that context, he highlighted the role of regulatory sandboxes in allowing new business models and technologies to be tested in controlled environments before wider rollout.
The digital agenda intersects with broader cyber risk trends. For insurance professionals, regulatory attention to data protection, cyber resilience, and governance is increasingly aligned with corporate buyers’ leading concerns, including cyber incidents and business interruption.
Demographic change was another structural issue under discussion. By 2050, all ASEAN members are projected to be ageing, aged, or super-aged societies, with elderly populations expected to reach about 129 million. This trend is expected to support sustained demand for medical cover, long-term care solutions, and retirement-related products, while adding to fiscal and social pressures.
Seilava said ageing trends highlighted the need to expand insurance penetration, particularly in markets where coverage is still developing. Cambodia, which is projecting economic growth of around 5% in 2025, noted that its domestic insurance sector remains relatively small in scale. Penetration currently stands at 1.13%, with insurance density of US$20.65 per capita. “These figures reflect both the essential role of insurance and the substantial potential for further development,” Seilava said. National priorities include strengthening disaster-risk insurance, widening digital distribution channels, and improving public understanding of insurance solutions.
Bou Chanphirou, director-general of the Insurance Regulator of Cambodia, said regional cooperation will be important as ASEAN economies manage multiple sources of uncertainty, from global economic conditions to climate- and cyber-related threats.
Chanphirou said the meeting theme – “Fostering Collective Growth and Resilience to Overcome Emerging Challenges” – was “particularly timely,” citing economic volatility, climate risk, technological change, and evolving consumer expectations as concurrent pressures on markets and regulators. “By working together, we can enhance regulatory frameworks, promote innovation, and support the development of insurance markets that are both resilient and responsive to our people’s needs,” Chanphirou said. He also welcomed Timor-Leste’s insurance regulator, which joined the ASEAN insurance meetings for the first time as the bloc’s newest member.
Officials said ongoing discussions would cover standard-setting, climate-risk modelling, cross-border coordination on digital regulation, and the development of products for ageing populations. Seilava said he was confident the forum would help ASEAN prepare for emerging risks, adding: “The insurance sector plays a vital role in protecting our people, supporting businesses, and contributing to regional resilience.”
The regulatory calls for closer alignment come against the backdrop of a changing corporate risk landscape in Asia, as presented in Aon plc’s latest Global Risk Management Survey. Based on responses from nearly 3,000 risk managers and executives in 63 countries, the survey indicates that businesses in Asia are navigating a mix of cyber exposure, competitive pressure, economic uncertainty, and financial volatility.
Cyber incidents, including data breaches, remain the top-ranked risk for Asian organisations. However, “increasing competition” and “exchange rate fluctuation” have moved up in the regional rankings. Competition has entered the top three risks for 2025, up from eighth place in 2023. The survey links this development to shifts in trade flows, supply chains, and market entry strategies that are influencing corporate risk assessments.
More than half of surveyed Asian organisations reported losses linked to exchange rate movements. Economic slowdown and heightened competition also contributed to financial impacts, with 45.4% and 43.6% of respondents, respectively, citing related losses. Talent management remains an issue, with 30.4% of businesses indicating that difficulties in attracting and retaining skilled employees resulted in losses.
Weather and natural disasters ranked eighth among the top risks in Asia, reflecting the region’s exposure to climate-related events. Talent attraction and retention rounded out Asia’s top 10 risks and appeared as a regional feature, as it did not appear in the survey’s global top 10.
