By Henry Gale

Nov 3 - (The Insurer) - The Insurer sets out 10 themes that will be major talking points during this year’s Singapore International Reinsurance Conference.

1. Mixed growth picture

GDP growth across most of Asia Pacific slowed in 2024 and is predicted to do so again this year, driven in part by the Trump administration’s actions on tariffs. However, non-life insurance markets in the region have continued to outpace GDP growth. Premium growth was particularly strong in Vietnam at 15.8%, India at 12.8% and the Philippines at 10.3%, according to a recent report from Gallagher Re.

2. More international reinsurers look to Asia

While many of the largest reinsurers have been building a presence in Asia for years, others are also looking to the continent for growth. 「There are a lot of smaller reinsurers, traditionally focused on Europe and the U.S., who are now looking at Asia as well,」 Gallagher Re’s Mark O’Brien told The Insurer.

3. Rate reductions expected

With reinsurance capacity plentiful, many cedants are likely to secure rate reductions at January 1, as already seen at some renewals during 2025. Reductions are expected to be most acute for well-performing portfolios.

4. Will reinsurers move on terms?

After years of hardening, cedants may also push to relax some wordings or reduce attachment points, which reinsurers will inevitably try to resist. Will they be able to hold?

5. Asian reinsurers pursue growth elsewhere

Partly because of the competitive landscape in the region, several Asia-based reinsurers are seeking expansion in other markets. Korean Re, Peak Re, Malaysian Re and others have markedly increased their international underwriting in recent years, Fitch Ratings observed in a recent report, making Asia’s reinsurers less dependent on business in the region.

6. Asia’s role in the M&A wave

One way for Asian carriers to diversify is by acquisition. So far this year, Sompo has struck a deal to acquire Aspen, DB Insurance agreed to acquire U.S. specialty carrier Fortegra and Samsung Fire & Marine more than doubled its stake in Lloyd’s insurer Canopius to 40%. Amid a surge of major international M&A transactions, could more Asian carriers join the trend?

7. Catastrophes and the protection gap

2025 has been a relatively benign year for regional insured losses so far. However, March’s 7.7 magnitude earthquake in Myanmar caused significant economic losses, including in Thailand, where Hannover Re said in September it saw an increase in demand for quake cover and reinstatement capacity. Efforts continue to close the protection gap, with many of the impacts from this year’s typhoons, floods and seismic activity uninsured.

8. Continued growth in the ILS market

While a rapid growth in catastrophe bonds is unlikely in Asia’s softening market, there have been more transactions in the last year, including from Peak Re, Sompo and first-time sponsor Taiping Re. Global issuance continues to break annual records as more investors, including in Asia, show willingness to support transactions.

9. More demand for structured reinsurance

Carriers are also turning to another alternative to traditional reinsurance, with both Guy Carpenter and Gallagher Re citing increased demand for structured solutions in recent commentary. Some cedants are looking to use premium savings on traditional covers to invest in new solutions to protect their earnings or capital, Guy Carpenter’s Tony Gallagher told The Insurer.

10. Regulatory change

Changes in reinsurance demand, including for structured covers, could also be a result of carriers reassessing their solvency positions. Taiwan, Japan, India and Vietnam are preparing to introduce new risk-based capital frameworks, while some Thai and Indonesian insurers are under pressure after minimum capital thresholds increased, Gallagher Re said.