In this interview with Intelligent Insurer connected with the 2024 Singapore International Reinsurance Conference, Guy Carpenter’s Tony Gallagher, CEO, Asia Pacific, describes the opportunities and challenges shaping renewals in Asia Pacific, as the market heads into 2025. He identifies 3 strategic challenges carriers must carefully manage: capital, volatility and growth.
“We’re in a very different position from this time last year,” Tony explained. “There’s a lot more capital available in the marketplace compared to 12 months ago. Demand is somewhat similar to the prior year, but structures have changed significantly—retentions have increased, and proportional treaties have undergone substantial shifts.”
Tony continues to describe the need for continuous reassessment, as risks steadily change.
“When you look at these evolving risks, you look at your original portfolio and ask: ‘Is this structure still fit for purpose? Do we have the right reinsurance structures, the right original pricing, the right coverage in place?’,” he said. “The question is not rhetorical—there will be discussions around retentions, structures, and whether pricing is right for the business.”
Tony also talks about how managing general agents (MGAs) are becoming growing factors in the region.
“Across Asia, more companies are looking at MGAs as a way to grow,” Tony explained. “Large insurance companies focus on large pieces of business, which they should do. But this also means that some specialist areas might be better handled by MGAs or insurance-like vehicles, which deliver tailored products with insurer backing.”
Looking ahead to January 1 renewals, Tony expects a “stable renewal.”
“The companies with good risk management and a deep understanding of their portfolios will be best positioned for successful renewals,” he explained.