Asia Pacific insurers must seek reinsurance
Life insurers in the Asia Pacific region must have access both to the very best data and local expertise, as well as a broad view of the reinsurance market, to fully capitalise on the potential growth in the region.
This is the opinion of Nigel Sedgwick, head of life reinsurance at Willis Re, who believes that the speed at which many of these economies are growing means it is imperative for insurers to understand the nuances and trends of their markets with access to the right data and risk management platforms being crucial.
He notes that in the life insurance sector, many of these resources are provided by global reinsurers.
“As a result, a symbiotic relationship often evolves between a life insurer and one reinsurer. This is understandable, given the benefits that an insurer enjoys in terms of access to the sophisticated expertise, data and systems that the reinsurer can provide. That doesn’t mean, however, that such a relationship has to remain exclusive; there is a growing depth in the life reinsurance market beyond the half dozen or so big established players.
“Broadening access to the reinsurance markets can have many advantages, including price competition, new ideas, market knowledge, etc. Variety is the spice of life, after all. While there may be arguments that such an expansion will be slow to happen, one is tempted to look at the non-life sector, which is significantly more diversified, and draw some simple conclusions,” he said.
