BEIJING – May 18, 2025 – Professor Chew Soo Hong delivered a keynote address at the Second Longma Insurance Forum, held on May 17, 2025, in Beijing. The forum, themed "Preventing Insurance Industry Risks and Achieving High-Quality Development," was hosted at the Central University of Finance and Economics (CUFE).

The lecture began with the question "What is risk?" and explored the definition of risk, emphasizing that risk is a "feeling" rather than merely a reflection of objective uncertainty. Individual emotional states such as expectation, anxiety, joy, despair, optimism, and pessimism, as well as the temporal characteristics of events, all influence an individual's perception of risk. This discussion significantly expanded the connotation of risk.

Professor Chew further proposed that "Undue Hazard" is a key factor connecting individual sense of security and societal security. Societal security, he argued, is built upon the foundation of individuals reducing undue hazards, thereby enhancing their personal sense of security.

Finally, he provided a behavioral definition of individual sense of security and quantified the demand for security through a related "insecurity premium." He advocated replacing Expected Utility Theory with Weighted Utility Theory to better capture risk decision-making. His research significantly broadens the boundaries of insurance studies and provides important theoretical support and methodological guidance for the interdisciplinary integration of behavioral economics and actuarial science.

The Second Longma Insurance Forum brought together leading scholars and industry practitioners to discuss pressing issues in insurance risk management and high-quality development. Professor Chew's keynote was widely received as a highlight of the event, offering fresh theoretical tools for understanding individual and collective security in an uncertain world.

About the Longma Insurance Forum
The Longma Insurance Forum is an annual academic conference hosted by the Central University of Finance and Economics (CUFE) in Beijing, focused on advancing research and practice in insurance economics, risk management, and high-quality development of the insurance industry.