Malaysian Re assembles ASEAN RE pool to boost net zero efforts

It aims to lead the ASEAN (re)insurance industry in supporting ASEAN countries' efforts to achieve net-zero emission targets

The ASEAN Reinsurance Working Committee (ARWC) signed a commitment to support the establishment of the ASEAN Renewable Energy Pool (AREP), which was proposed and be chaired (2021-2022) by Malaysian Re.

The MOU outlines the terms of collaboration, including providing underwriting capacity and forming the AREP under the supervision of the ASEAN Insurance Council (AIC).

The proposal started in 2021 to create a facility or pool to back the renewable energy policies of ASEAN governments. 

Ahmad Noor Azhari Abdul Manaf, President & CEO of Malaysian Re, emphasised the challenges related to ESG/Renewable Energy, including the complexity of solar, wind, and other renewable energy resources. 

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He noted that the financial risks associated with these ventures could be overwhelming for individual insurance companies to manage effectively. Thus, the need for a collective effort led to the formation of an insurance pool.

The MOU, signed during the 26th ASEAN Insurance Regulators’ Meeting & 49th ASEAN Insurance Council Meeting, signifies the joint commitment of participating ARWC Members. 

The collaboration, under the supervision of AIC, aims to lead the ASEAN (re)insurance industry in supporting ASEAN countries' efforts to achieve net-zero emission targets and effectively address climate change.

The key members participating in this collaboration are Malaysian Re (acting as the Pool Manager), PT Reasuransi Indonesia Utama (Persero) (Indonesia Re), Vietnam National Reinsurance Corporation (VINARE), Cambodian Reinsurance Company (Cambodia Re), Thai Reinsurance Public Company Limited (Thai Re), and National Reinsurance Corporation of the Philippines (Nat Re).