In line with global market trends, the reinsurance market in Asia Pacific experienced the same downward pressure on rates in 2010 as most other markets, according to a new report from Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a part of the Marsh & McLennan Companies.The Asia Pacific region is one of the reinsurance industry’s fastest-growing markets.
The Asia Pacific Catastrophe Report finds that approximately 20 percent of every dollar of major catastrophe excess of loss reinsurance limit purchased in the world covers countries in Asia Pacific.
In terms of total catastrophe excess of loss reinsurance premium spend, about 10 percent to 15 percent covers Asia Pacific countries. The more mature markets of Japan and Australia/New Zealand account for most of the total limit and premium spend in the region.
The report also addresses the rapid growth of catastrophe reinsurance in many of the Asia Pacific countries over the past ten years, identifying the different drivers of growth for each of these markets. For example, growth in Japan, the region’s largest reinsurance buyer, has been fueled by enhancements to modeling techniques, capital management practices and solvency treatment.
The report’s executive summary is available at www.gccapitalideas.com. The full report reviews the catastrophe exposure, insurance availability and reinsurance market conditions of major countries in the Asia Pacific region, providing insights into the 2011 renewal season as well as the progress of the region’s overall development as a major growth market.
James Nash, CEO of Asia Pacific Region, Guy Carpenter & Company, said, "Due to economic constraints, there is underinsurance for the catastrophe peril in many countries in
the region. As economies grow, so does the demand for catastrophe insurance. An increasing number of reinsurance companies are establishing branches or subsidiaries in the region to take advantage of the ability to diversify their capital as new catastrophe reinsurance opportunities present themselves. We also see heightened interest in the creation of new local reinsurers, capitalized with Asian capital and based in the region