Snowy Owl
Retired in 2010, In Memoriam
Bracing For Avian Flu Pandemic
http://www.brudirect.com/DailyInfo/News/Archive/Aug06/030806/nite10.htm
By Kartika Rahman
Bandar Seri Begawan - Avian flu represents a potentially far greater threat to economies of Asia and the world than SARS.
With this in mind, Singapore Reinsurance Association took the initiative to hold the Avian Flu Panel Discussion yesterday at the final day of the 23`d East Asian Insurance Congress (EAIC).
The event was moderated by the editor-inchief of Asia Insurance Review, Mr Sivam Subramaniam.
The session brought together a panel of insurance, economic, risk and medical experts, which included a doctor, a re-insurer, a broker, a cedent and an insurance regulator, to identify the key issues together with the possible human and business impacts should a pandemic occur.
There was a wide-ranging discussion, drawing in questions and high audience participation, canvassing many views.
Dr Yii Hee Seng, Deputy Medical Director, Raffles Medical Group, started off the discussion by presenting the full dynamics of avian flu, impact of past outbreaks, value of early vaccination and avian influenza's high possibility to mutate.
"We can't afford to be complacent," he concluded.
Insurance regulator, Mr Low Kwok Mun, Executive Director, Insurance Supervision, Monetary Authority of Singapore (MAS), continued the discussion on the topic, `Avian Flu Pandemic: Business Continuity Preparedness', whereby an overview of Singapore's national effort was given, as well as hard facts on the impacts on financial sector, operational impact and MAS's preparedness.
In light of Singapore having previously been affected by a SARS pandemic, Mr Low stated, "Singapore government adopts an integrated national effort involving all relevant government agencies."
He said in Singapore, the Ministry of Health is the lead agency to coordinate responses across government departments with a Flu Pandemic Response Plan, creating initiatives with the private sector, creating public awareness, and performifig emergency drills.
The financial impact would be that of a decline in confidence, heightened volatility and increased risk aversion in financial markets, thus resulting in a fall in asset prices that would increase demand for liquidity, he said.
Whereas the operational impact, he added, would be felt from absenteeism from work due to illness, caring for the sick and quarantined, resulting in a loss of productivity and reduced labour force.
To mitigate the impacts, Mr Low suggested, on the financial side, to conduct regular stress testing and establishing policy coverage, and on the operational side, to refine planning assumptions by preparing for sustained operational disruptions and to consider mass staff absenteeism.
With preparedness, Mr Low explained, MAS has taken the lead by having clear command and control structure for crisis management, consisting of crisis management team, crisis coordination centre and specific task force groups, as well as having identification of mission-critical functions and assuring industry wide exercise.
In addition to the strong message of a nation's need to be prepared for a pandemic, Mr Low concluded, "Business continuity planning is a nation-wide effort involving the government, private sector and public. There is also a need for collaboration with the insurance industry to ensure financial stability."
The session was carried on by Mr Ian McCarry, Regional BCP Manager, ACE - Asia Pacific, who discussed the difference between planning for disasters and planning for avian flu, standard business contingency plans (BCP), planning for avian flu (ACE Phase approach), and ACE's status.
The highlight of Mr McCarry's presentation was his overview of avian flu's impacts.
"The difference is people! Forty to 50 per cent may be affected," he stated.
This will have a serious impact on manning critical functions, staff could be either ill, looking after the sick, transportation could be a major issue in case of public transportation being discontinued to control the pandemic.
In addition, depending on authorities approach to avian flu, companies may lose building and IT systems, whereby buildings may be closed down indefinitely for quarantine, and IT systems within the buildings need manning for continuous maintenance.
Mr McCarry wrapped up the discussion by recommending the re-insurance industry to create its own BCP - Avian Flu Plans, so that business can function when the avian flu crisis eventuates. "It is only a matter of when," he said. Re-insurer, Mr Heinrich Eder, Managing Director, Munich Holdings of Australasia Pty Ltd, then led the discussion by providing an analysis of a wide line of businesses. All industries are affected, whether it be barely minimum.
The Panel Discussion on Avian Flu ended with a broker's perspective.
Malcolm Steingold, Chief Executive Officer of Asia Pacific, Aon Re Asia Pte Ltd, talked on `Pandemics- Implications and Challenges for the Industry' in two perspectives: Insurance industry's current risk profile and the role of the industry in the event of a pandemic.
Mr Steingold's discussion focused on a reinsurer's perspective on challenges for the insurance industry - `Can the insurance industry play a meaningful role? What can the industry currently offer?' - noting that the industry seeks to limit its exposure to `measurable' catastrophes.
Avian flu is outside the normal insurance realm of remote, accidental and unforeseen exposure and the reinsurance market has moved to exclude all possibility of an avian flu claim. -- Courtesy of Borneo Bulletin
http://www.brudirect.com/DailyInfo/News/Archive/Aug06/030806/nite10.htm
By Kartika Rahman
Bandar Seri Begawan - Avian flu represents a potentially far greater threat to economies of Asia and the world than SARS.
With this in mind, Singapore Reinsurance Association took the initiative to hold the Avian Flu Panel Discussion yesterday at the final day of the 23`d East Asian Insurance Congress (EAIC).
The event was moderated by the editor-inchief of Asia Insurance Review, Mr Sivam Subramaniam.
The session brought together a panel of insurance, economic, risk and medical experts, which included a doctor, a re-insurer, a broker, a cedent and an insurance regulator, to identify the key issues together with the possible human and business impacts should a pandemic occur.
There was a wide-ranging discussion, drawing in questions and high audience participation, canvassing many views.
Dr Yii Hee Seng, Deputy Medical Director, Raffles Medical Group, started off the discussion by presenting the full dynamics of avian flu, impact of past outbreaks, value of early vaccination and avian influenza's high possibility to mutate.
"We can't afford to be complacent," he concluded.
Insurance regulator, Mr Low Kwok Mun, Executive Director, Insurance Supervision, Monetary Authority of Singapore (MAS), continued the discussion on the topic, `Avian Flu Pandemic: Business Continuity Preparedness', whereby an overview of Singapore's national effort was given, as well as hard facts on the impacts on financial sector, operational impact and MAS's preparedness.
In light of Singapore having previously been affected by a SARS pandemic, Mr Low stated, "Singapore government adopts an integrated national effort involving all relevant government agencies."
He said in Singapore, the Ministry of Health is the lead agency to coordinate responses across government departments with a Flu Pandemic Response Plan, creating initiatives with the private sector, creating public awareness, and performifig emergency drills.
The financial impact would be that of a decline in confidence, heightened volatility and increased risk aversion in financial markets, thus resulting in a fall in asset prices that would increase demand for liquidity, he said.
Whereas the operational impact, he added, would be felt from absenteeism from work due to illness, caring for the sick and quarantined, resulting in a loss of productivity and reduced labour force.
To mitigate the impacts, Mr Low suggested, on the financial side, to conduct regular stress testing and establishing policy coverage, and on the operational side, to refine planning assumptions by preparing for sustained operational disruptions and to consider mass staff absenteeism.
With preparedness, Mr Low explained, MAS has taken the lead by having clear command and control structure for crisis management, consisting of crisis management team, crisis coordination centre and specific task force groups, as well as having identification of mission-critical functions and assuring industry wide exercise.
In addition to the strong message of a nation's need to be prepared for a pandemic, Mr Low concluded, "Business continuity planning is a nation-wide effort involving the government, private sector and public. There is also a need for collaboration with the insurance industry to ensure financial stability."
The session was carried on by Mr Ian McCarry, Regional BCP Manager, ACE - Asia Pacific, who discussed the difference between planning for disasters and planning for avian flu, standard business contingency plans (BCP), planning for avian flu (ACE Phase approach), and ACE's status.
The highlight of Mr McCarry's presentation was his overview of avian flu's impacts.
"The difference is people! Forty to 50 per cent may be affected," he stated.
This will have a serious impact on manning critical functions, staff could be either ill, looking after the sick, transportation could be a major issue in case of public transportation being discontinued to control the pandemic.
In addition, depending on authorities approach to avian flu, companies may lose building and IT systems, whereby buildings may be closed down indefinitely for quarantine, and IT systems within the buildings need manning for continuous maintenance.
Mr McCarry wrapped up the discussion by recommending the re-insurance industry to create its own BCP - Avian Flu Plans, so that business can function when the avian flu crisis eventuates. "It is only a matter of when," he said. Re-insurer, Mr Heinrich Eder, Managing Director, Munich Holdings of Australasia Pty Ltd, then led the discussion by providing an analysis of a wide line of businesses. All industries are affected, whether it be barely minimum.
The Panel Discussion on Avian Flu ended with a broker's perspective.
Malcolm Steingold, Chief Executive Officer of Asia Pacific, Aon Re Asia Pte Ltd, talked on `Pandemics- Implications and Challenges for the Industry' in two perspectives: Insurance industry's current risk profile and the role of the industry in the event of a pandemic.
Mr Steingold's discussion focused on a reinsurer's perspective on challenges for the insurance industry - `Can the insurance industry play a meaningful role? What can the industry currently offer?' - noting that the industry seeks to limit its exposure to `measurable' catastrophes.
Avian flu is outside the normal insurance realm of remote, accidental and unforeseen exposure and the reinsurance market has moved to exclude all possibility of an avian flu claim. -- Courtesy of Borneo Bulletin