Start-ups can still thrive across Asia

There is still room in the Asian market for start-up insurance companies, partly because merger and acquisition (M&A) activity in the region is less prevalent.

That is the opinion of Reto Brosi, chief executive of Asia Capital Re, speaking to Intelligent Insurer at MultaQa Qatar 2015.

“Over the past few years in the Asian market, there has been less consolidation and a number of start-ups which have grown quickly,” he said. “Globally, there’s been a drive towards scale. Some of these transactions are based on acquiring a new skill set or diversification.”

Two years ago, Asia Capital Re launched a Dubai branch to be closer to its customers.

“We’re very optimistic about GDP growth in the emerging markets, as this profits everybody. There are so many untapped risks in the region, such as infrastructure and pollution,” said Brosi.

One of these risks stems from the growing expat community in the region. Currently, the reinsurer is looking at a possible line of products that will provide insurance for the short period of time expats will be in the country. He believes that Asia Capital Re differentiates itself from other companies in the area in three ways. Firstly, all decisions are made within the region without the need to refer back to the main office.

Secondly, and less tangible, is that most of its staff speak a number of languages which benefits customers.

Lastly, the company is very innovative, Brosi said. He noted that the ACR Group offers two pool solutions, one for natural catastrophe and one for agriculture risks, which are managed by Asia Capital Re’s associated company, Asia Capital Reinsurance Malaysia, and actively invites others to join.

On alternative capital, Brosi said: “I would love for our company to be the first to undertake such a transaction in Asia. But the challenge is that the capital requires modelled perils, and aside from Japan, the market is relatively under modelled.”