Eurasia mulls wider Asian reinsurance presence in 2027 as stronger ratings widen market access

Asia’s economic expansion is creating room for regional reinsurers alongside global players, says Eurasia’s Kairat Chegebayev, as stronger ratings support the company’s return to key markets.

Key points:
Stronger ratings widen Asian market access
Singapore return is a priority
Eyes on India, China and South Korea

Asia cannot be treated as a single reinsurance market. Its vastly different risk profiles, regulatory environments, protection needs and market maturity demand tailored strategies, favouring reinsurers that can combine strong capitalisation with technical expertise and local market knowledge.

That’s the view of Kairat Chegebayev, chairman of the management board of Eurasia Insurance Company.

“There is no single strategy that works across Asia,” Chegebayev told SIRC Today. “Reinsurers with strong expertise, high levels of capitalisation and the ability to understand the specific characteristics of each market are best positioned to strengthen their presence.”

Asia remains one of the most promising regions for international reinsurance, encompassing mature insurance markets such as Japan, South Korea, Singapore and Hong Kong, alongside rapidly growing economies including China, India and Malaysia – where urbanisation, rising asset values and large-scale infrastructure and industrial projects are generating fresh demand for capacity.

These developments are creating opportunities beyond the largest global reinsurers, giving established regional players such as Eurasia scope to expand.

“We see Asia as an important region for the development of our reinsurance business and the further geographical diversification of our portfolio,” Chegebayev said.

“We see particular potential in large property and corporate risks, where substantial exposures need to be shared among several reinsurers and diversified geographically.”

Eurasia’s areas of interest include energy, oil and gas, heavy industry, construction and infrastructure, commercial property, mining, and aviation and space risks.

“I would also highlight catastrophe reinsurance,” he added. “Given the scale of Asia and its exposure to natural catastrophes, this line is of particular strategic interest to us, provided that risks are modelled effectively and accumulations are strictly controlled.”

Growth strategy

Eurasia’s upgraded international ratings are opening new doors in Asia.AM Best has upgraded Eurasia’s Financial Strength Rating to A− (Excellent), a development Chegebayev says widens the programmes and markets in which it can participate.

The company opened its India International Insurance Office in GIFT City earlier this year, “one of our most important markets and one in which Eurasia has historically been an active reinsurer.”

But he said, “an increased presence does not mean a change in our underwriting policy. We continue to participate selectively in programmes and assess incoming risks conservatively.”

Singapore is another focus, which Chegebayev described as “one of the keys to the further development of our business across Southeast Asia”. Its concentration of international brokers, insurers and reinsurers, alongside its role in marine insurance, makes it a gateway to the region. He said the ratings upgrade creates opportunities for Eurasia to return to the Singapore market.

“Our objective, however, goes beyond expanding our geographical presence,” he noted. “Building sustainable, long-term relationships with local cedants, brokers and other market participants is far more important to us.”

In 2027, Eurasia also intends to rebuild its presence in Japan and South Korea, where regulatory and rating changes had previously led it to scale back its activities.

“2027 could become a year of returning to markets that Eurasia has known well for many years.”

Regional strength

Insurers across Asia are scrutinising concentrations and potential loss severity as the value of insured assets increases. Chegebayev sees a shift towards “a more selective and measured approach to risk acceptance”, with cedants looking beyond the headline price of cover.

“Reinsurance pricing remains an important consideration, but it is by no means the only one,” he observed. “A reinsurer’s financial strength, ratings, expertise and ability to meet its obligations promptly are particularly important when large or catastrophic losses occur.”

“In my view, demand is therefore gradually shifting from the volume of capacity towards its quality.”

Regional reinsurers, he argues, can support international panels through local expertise and quicker decisions. As a Central Asian reinsurer, Eurasia also offers cedants another geographic source of capacity, helping diversify their protection.

“I do not believe regional and global reinsurers should be seen as competitors in opposition to one another. They complement each other.”

“Trust in the international market is built not only through strong ratings and capitalisation, but also through the quality of day-to-day interaction, predictable decision-making and the timely fulfilment of obligations by all parties,” he added.

Eurasia intends to expand within its existing underwriting expertise, assessing rates, contract terms and loss potential while controlling concentration by geography, industry and risk type.

“Business expansion must not lead us to accept risks at economically unsustainable rates or on terms that do not reflect the potential size of a loss,” he stressed.

Kairat Chegebayev is chairman of the management board of Eurasia Insurance Company, and can be contacted at: Kairat.Chegebayev@theeurasia.kz

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