Ravi Menon: Allianz and Singapore – growing a specialist insurance hub in Asia Opening remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the launch of Allianz’ Regional Centre, Singapore, 18 September 2013. *  *  *  Mr Manuel Bauer Dr Dieter Wemmer Dr Maximilian Zimmerer Dr Christoph Mascher Distinguished guests, ladies and gentlemen, Good evening. I am pleased to join you this evening at the official opening of Allianz’s new regional centre in Asia Square. Allianz and Singapore This marks a major step forward for Allianz in Singapore and in Asia. For the first time, we will see Allianz’s 450 staff across 11 entities coming under one roof. This new centre will strengthen synergies across business units, enabling Allianz to better serve the needs of its 20 million customers in the region. In a way, Allianz’s story reflects Singapore’s own development as a specialist insurance market. Just ten years ago, the insurance industry in Singapore was focused on writing pure domestic risks. Singapore has now developed the capacity and expertise to underwrite large and complex risks across Asia. With the opening of Allianz’s new office here, Asia Square is also shaping up to be Singapore’s own version of London’s Leadenhall Street, where many prominent insurers and brokers are located. Such physical co-location will help to promote greater exchange of ideas and collaboration, and create an insurance marketplace that is committed to deliver customised and innovative solutions. Mitigating Asian risks The prospects for Asia’s insurance market are bright.

Allianz strives to support its businesses with sufficient capacity to underwrite risks. The establishment of the Singapore branch of Allianz Global Corporate and Specialty in 2011 reflects a deep commitment to build underwriting capacity in the Asia-Pacific. In the same way, to be the premier specialist insurance market in Asia, Singapore must deepen its underwriting expertise in reinsurance and specialty insurance with an Asian focus. Two, Profitability. Allianz seeks to be profitable through its operating businesses alone, so as to be as independent as possible from volatility in the financial and capital markets. The global insurance industry continues to face pressure from weak economic growth, soft pricing and persistently low investment yields. Insurers can no longer rely on investment income or rate increases alone, to compensate for weak underwriting. Likewise, even as Singapore’s insurance industry diversifies the span of its activities to include capital markets, it must continue to stay focused on core competencies in underwriting insurance risks. High underwriting standards are critical for sustainable growth. Three, Internal Capabilities. Allianz aims to reduce complexity by focusing on core activities, reducing structural inefficiencies, and streamlining processes. Likewise, in seeking to strengthen its value proposition as a specialist insurance market with a deep appreciation of Asia’s risks, Singapore’s insurance industry must invest in Asia-focussed data, research and analytics. Singapore has achieved a good head-start in a number of areas, such as SMU’s Centre for Silver Security for longevity risk and NTU’s Institute for Catastrophe Risk Management for catastrophic risks. We must continue to build on these capabilities.