Full Capacity: Asia is on the El Niño frontline, and it pays first
June 13 2026 by Mithun Varkey
Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.
IAN exclusives. In exclusive reports from InsuranceAsia News this week, we revealed that Liberty’s chief distribution officer for Hong Kong and Singapore, Jacky Chan, has left the global insurer. Hong Kong-based Chan has been with the carrier since 2019.
Meanwhile, in Australia former head of transactional risk for Gallagher William Zhao has rejoined Marsh as senior M&A adviser within its private equity and M&A team, IAN revealed.
And we also exclusively reported on W&I specialist broker HWF Partners plans to enter the Asian market. Adrian Furlonge, CEO and founding partner of HWF, told IAN that the broker is “tentatively exploring the region”.
M&A spotlight. Australian broker Steadfast Group has received a US$5.4 billion conditional, non-binding and indicative offer from American broking group Amwins and its PE backer Dragoneer Investment Group.
Nat Cat update. A 7.8-magnitude earthquake that struck off Mindanao in the southern Philippines around on Monday has caused widespread damage to buildings, infrastructure and houses.
Gift City. Specialty (re)insurer International General Insurance Holdings (IGI) has secured approval from to operate in Gift City and it expects to open begin operations later this year.
On a ride. Sidecar regulation tops the wish list for Asia’s reinsurers and ILS advisers as jurisdictions in the region, most notably Hong Kong, advance their ILS regimes.
Brace, brace, brace
El Niño has officially returned, and the probability of it strengthening into a severe event is climbing fast. Some have already begun labelling it a “Godzilla El Niño” – a term that, while dramatic, may not be entirely misplaced.
Should sea surface temperature anomalies breach the 2 degrees Celsius threshold, the resulting disruptions will be widespread, expensive and potentially systemic.
El Niño is typically associated with increased rainfall in parts of Central Asia and drier conditions over Australia, Indonesia, and parts of southern Asia, according to the World Meteorological Organization (WMO).
“While the effects of El Niño are global and widespread, it hits Asian countries the hardest,” notes Ancha Srinivasanivasan, a Principal Climate Change Specialist at the Asian Development Bank.
“Drought becomes a more common occurrence, leading to energy, food and water insecurity.”
El Niño doesn’t just bring bad weather; it can cascade into energy, food, and water insecurity.
The region is already navigating supply chain fragility linked to geopolitical tensions in the Middle East, alongside tightening supplies of fertilisers and petroleum products.
El Niño compounds the stress.
Even in areas spared outright drought, the outlook is far from benign. Seasonal shifts can still drive flooding, acute water stress, or both.
Then there’s the typhoon problem, and it’s worse because it’s counterintuitive.
El Niño does not necessarily increase the number of tropical cyclones in the western North Pacific, but it can alter their behaviour.
Storm formation can shift eastward, tracks can curve in ways that reduce some traditional landfalls while increasing threats to higher-value markets, and storms can grow stronger and last longer.
You end up with a dangerous trade: fewer hits in familiar pockets, and more catastrophe-capable impacts where infrastructure, density, and insured values make losses harder to absorb.
In Australia, insurers are already warning of potential bushfire risk due to El Niño. The combination of heat and dry conditions significantly elevates the risk of extended drought conditions and severe bushfire seasons.
El Niño also pulls the economy into the underwriting frame.
When agriculture weakens, energy systems strain and water supplies wobble, business interruption risk rises along with severity.
The climate is interconnected. The economy is interconnected. Vulnerability is interconnected.
People moves
In senior appointments around the region, Australian lenders’ mortgage insurance (LMI) provider Helia Group has appointed Mark Senkevics as CEO.
Munich Re Specialty has appointed Angus Kench as head of commercial claims in Australia.
Lockton confirmed Sandra Lee as Asia chief growth officer for risk solutions, meanwhile, her former colleague Chloe Cha has joined Howden’s Asia M&A team.
Chubb Malaysia tapped Generali’s Gurudutt Joglekar as deputy country president.
Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region.
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Liberty, Marsh, Lockton, Guy Carpenter, Markel: 15 APAC insurance people moves of the week
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This week's newsletter also discusses the IAN exclusive, a nat cat update, NFRA's change of guard, nat cat update, and Peak Re's plans under its new leadership.
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Full Capacity: Silicon Valley takes a shine to an insurance carrier
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This week's newsletter also discusses the IAN exclusive, a nat cat update, NFRA's change of guard, nat cat update, and Peak Re's plans under its new leadership.
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