In this interview with Intelligent Insurer, Vicky Carter, Chairman of Global Capital Solutions, International, addresses conditions in the Asia Pacific reinsurance marketplace.
The Asia Pacific market, Vicky notes, has been through a “transition phase,” and having come through this, she optimistically anticipates a “calmer renewal season” at January 1, 2024, compared to the tumultuous one in 2023.
“We’re advising our clients in Asia-Pacific to expect a stable renewal season coming up in 2024,” she explained.
While Vicky expects disparities based on specific client situations, her general outlook remains consistent—forecasting a “more benign year” for Asia-Pacific. Capital is rebounding, and capacity is showing plentiful capacity.
“In my career, I don’t think I’ve ever seen the opportunities that are out there now,” Vicky continues.
Cyber is one of the segments that stands out in Vicky’s evaluation as a tremendous opportunity.
“If you go back 10 years, nobody really knew what cyber was. Today, it’s the fastest growing line,” she said. “But the penetration and uptake of cyber is still very small, and particularly in Asia, we see a huge opportunity around cyber, particularly in the SME (small and midsize enterprises) and micro-SME markets.”
Vicky also sees a big opportunity for managing general agents, insurtechs and insurance companies to partner up to tackle challenges around potential systemic risks. She cites exploration of public-private partnerships, such as Pool Re and Flood Re in the UK, she said, “to fill that huge gap between economic and insured loss in the future.”