The 2024 Singapore International Reinsurance Conference (SIRC) set new records with 3,300 delegates gathering to discuss the dynamic future of Asia-Pacific’s (APAC) reinsurance landscape. With APAC firmly established as a global growth engine, the conference highlighted a unique intersection of regional resilience, global scrutiny, and emerging risks in areas like cyber and natural catastrophe coverage.
Regional Resilience Amid Global Challenges
Despite global economic uncertainty, APAC’s natural catastrophe losses have trended lower than average this year. Brad Weir, Head of APAC Analytics, noted that while major typhoon activity recently impacted parts of Vietnam, Japan, and Taiwan, the year has been relatively moderate. Yet Typhoon Yagi and flooding serve as reminders of the region’s vulnerability to climate risks. Weir emphasised Aon’s climate-conditioned flood model in Malaysia, which aids APAC insurers in meeting regulatory stress testing while accounting for future climate scenarios. This illustrates a growing recognition of the need for climate-adjusted models across the region.
Cyber Insurance: Rising Demand in APAC
Driven by rapid digital transformation and heightened awareness of cyber threats, the APAC cyber insurance market is poised for substantial growth. Munich Re’s Michael Hauer projects that cyber premiums will double in the region by 2027, fuelled by new data regulations and a broadening demand beyond traditionally sensitive sectors like healthcare. “As awareness rises, cyber is becoming a key growth area,” said Hauer. This shift marks cyber as an area where APAC could outpace other regions, underlining the rising need for cybersecurity solutions in today’s digital economy.
Marine Insurance Premiums on the Rise
According to the International Union of Marine Insurance, APAC’s marine premiums rose to nearly $11 billion in 2023, reinforcing the sector’s consistent upward trend. Now accounting for 28.1% of global marine premiums, APAC’s marine sector shows strong resilience and growth, despite slight loss ratio deterioration. Cargo and hull premiums increased in 2023, reflecting a recovery from 2016 lows and underscoring the sector’s significance within APAC’s broader insurance market.
Data Transparency and the Road to Reinsurance Growth
Data quality was a prominent theme at SIRC 2024, with Swiss Re’s CEO, Andreas Berger, stressing the importance of transparency to secure substantial reinsurance placements. Berger’s keynote underscored a broader industry shift: for cedents in APAC to access global reinsurance capacity competitively, they must prioritise data quality and transparency. Swiss Re’s message reflects an industry-wide demand that cedents “approach reinsurance not as a routine purchase but as a genuine balance sheet strategy,” emphasising that accurate data is the foundation of balanced, long-term partnerships.
Rethinking Retentions and Pricing Stability
Tony Gallagher, APAC CEO of Guy Carpenter, addressed the impact of recent losses on retention and reinsurance pricing. Many insurers absorbed these losses directly, which raised questions around program structures. “What’s the new normal?” Gallagher asked, as markets and reinsurers engage in discussions to optimise pricing structures based on recent experiences. Gallagher also highlighted the potential for parametric insurance, especially as APAC faces a widening protection gap. Parametric products can provide rapid payouts following catastrophic events, enhancing resilience for high-risk areas across the region.
APAC’s Varied Market Landscape: Insights from AM Best
AM Best’s recent report reflects the contrasting dynamics within APAC’s insurance market. While mature markets such as Australia, Japan, and Singapore maintain high capital adequacy standards and benefit from regulatory stability, emerging markets struggle with lower insurance penetration and heightened economic volatility. Country-specific risks, especially in places like China and India, impact insurers’ financial stability. Nonetheless, APAC’s expanding middle class and urbanisation in emerging markets represent significant growth potential. This duality underscores the region’s role as both a stable force and a growth driver in the global insurance ecosystem.
Enhancing Industry Reputation and Attracting Talent
A noteworthy theme at SIRC was the importance of industry pride and talent engagement. Lloyd’s Chief Commercial Officer Dawn Miller emphasised, “Our industry is the oxygen that fuels many economies around the world.” As insurance enables stability in high-risk areas, Miller called for the sector to embrace its contributions with pride, which resonates as APAC strives to attract and retain the next generation of talent in reinsurance.
Looking Ahead: Opportunities for Supercede in APAC
SIRC’s emphasis on data transparency aligns with Supercede’s mission to enhance reinsurance efficiency. As data demands grow, Supercede’s Packs and Deals products offer APAC cedents and brokers powerful tools for data accuracy, seamless deal tracking, and efficient sharing. By addressing APAC’s data needs and supporting the region’s evolving risk landscape, Supercede is well-positioned to help clients navigate the growing expectations of global reinsurers.
Conclusion
SIRC 2024 underscored APAC’s pivotal role in the global reinsurance market, where rapid growth meets pressing needs for innovation and data quality. As APAC continues expanding into cyber and climate-adjusted products, solutions like Supercede can provide essential support with streamlined data and efficient deal-tracking. With resilience and readiness, the APAC reinsurance industry is set to tackle both the challenges and the vast opportunities that lie ahead.
