Asia Pacific reinsurance buyers are reviewing whether their catastrophe cover provides enough protection for earnings and capital ahead of 2027 renewals, according to Tony Gallagher, Marsh Re’s chief executive for the region.

Key Takeaways

  • Insurers are examining retention levels after a succession of catastrophe events, Gallagher said.
  • Buyers may seek more cover, including protection that responds to smaller losses.
  • Gallagher expects discussions in Singapore in November to bring renewals and potential rate movements into clearer focus.

Why Asia Pacific reinsurance cover is under review

Gallagher said client discussions at the annual RVS reinsurance meeting in Monte Carlo focused on whether programme structures remain fit for purpose in 2027. Buyers are considering retention levels, or the losses insurers keep before reinsurance cover responds, as well as aggregate covers used to protect earnings and capital.

He cited a continuing frequency of floods, typhoons and, to some degree, earthquakes in Asia during 2026. The majority of those losses are retained, he said. Some clients have also used more of their natural-perils allowance than expected or than in prior years.

Following changes to retention levels in various treaties in 2023, insurers are asking whether there is a better way to protect portfolios and deliver stable results, Gallagher said.

Buyers weigh limits and protection for smaller losses

Gallagher’s assessment is that buyers will seek at least as much reinsurance as they purchased in 2026 and may look to buy more. They are weighing both the amount of cover available and whether they have enough protection lower down, where smaller losses would trigger it.

He cautioned against describing the entire regional market as soft, saying conditions vary by country, territory and portfolio. He cited Thailand as an example of a hard market in the prior year after an earthquake before renewal.

Gallagher said potential 2027 rate movements may become clearer around the industry meeting in Singapore in November, when discussions move closer to negotiations for January 1 renewals.

Growth and changing risks

Beyond catastrophe protection, Gallagher said clients increasingly want broader partnerships that help them protect earnings and deliver shareholder returns. He described that as a shift from a narrower focus on volatility protection.

He pointed to infrastructure and manufacturing investment across continental Asia, from Korea to Indonesia, as a source of insurance needs and potential reinsurance demand. He also said casualty and cyber business is growing slowly, while changing risks such as electric vehicles require the industry to adapt.

Next milestone

The next confirmed industry meeting is in Singapore in November, ahead of January 1 renewal negotiations.

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