Reinsurers are poised to leverage a disciplined market and differentiate themselves by actively assisting insurers in managing risks and pursuing growth, moving beyond price competition, Aon’s George Attard shared in his comments following the Singapore International Reinsurance Conference (SIRC).
He stated: “This year’s SIRC was an exciting time for us to connect insurers and reinsurers across APAC to deliver the very best for clients at renewal.
“The reinsurance landscape in the APAC region is rapidly changing, driven by a combination of emerging risks, regulatory changes and technological advancements. At the same time, the rising demand for solutions to address climate risk, cyber, renewable energy transition and emerging technological risks, presents a significant growth opportunity for reinsurers.”
Given their excess capital, Attard believes reinsurers are well positioned for a growth mindset. At June 30, 2024, reinsurer capital stood at USD695 billion, up USD25 billion from year-end 2023.
“Conference season has highlighted the opportunity for reinsurers to deepen their partnerships with insurers, use their capital to create a more sustainable market and lean-in to a changing risk landscape,” the executive continued.
Adding: “While there was discussion around recent global events like hurricanes Helene and Milton at SIRC, reinsured loss estimates are expected to fall within reinsurers’ expectations.”
As a result, Aon expects a disciplined market with momentum shifting towards insurers, with pricing competition to broaden into 2025, and greater flexibility.
Attard highlighted: “Of course, this will be nuanced by individual market and client dynamics, but reinsurers have a significant opportunity to differentiate themselves beyond price competition by playing a more active role in helping insurers manage frequency losses and earnings volatility, and supporting their growth ambitions.”
He concluded: “So how will Aon make a difference to clients in APAC at the upcoming renewals? We have almost 600 colleagues on the ground with deep insight into local market dynamics with access to our global network.
“Our one team approach combined with the depth of our talent, capability and expertise and the strength of our relationships with clients and partners, best positions us to optimise results for each of our clients. We look forward to continuing to collaborate with our clients and supporting them as we head to 1/1 and beyond.”
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