Gallagher Re lays groundwork for cyber reinsurance growth in APAC with new model

With cyber incidents rising and penetration low, Gallagher Re unveils innovative framework to bridge APAC’S cyber reinsurance supply and demand gap.

Key points:
New model for cyber reinsurance growth
Links global cyber capacity with APAC demand
Covers fac, treaty and white-label structures

Reinsurance broker and risk management firm Gallagher Re has launched an innovative framework to connect global cyber reinsurance capacity with the fast-growing demand in Asia-Pacific – a move that aims to shift the industry’s mindset from chasing mature markets to building new ones.

Unveiled during the Singapore International Reinsurance Conference (SIRC), the new structure is designed to act as a “market infrastructure” linking cyber capacity to local need, spanning every client segment from personal lines and SMEs to large enterprises.

“APAC’s rapid digital growth presents both opportunities and challenges in managing cyber risks.”

The framework offers flexibility across all reinsurance structures—white-label, facultative and treaty—and covers a wide range of products including cyber, technology errors & omissions and cyber property damage. Initial expectations include a minimum $15 million line for facultative reinsurance and up to a minimum of $10 million for whitelabelling and treaty.

Gallagher Re said the initiative is designed to provide flexible and comprehensive solution tailored to the region’s unique needs. The broker believes the untapped potential of cyber lies not in competing for saturated markets, but in fostering growth through new international products and partnerships.

Mark O’Brien, head of APAC at Gallagher Re, said the region’s rapid digitalisation demands equally innovative forms of risk transfer. “APAC’s rapid digital growth presents both opportunities and challenges in managing cyber risks,” he said. “By aligning global capacity with local demand, we are paving the way for sustainable growth in the cyber reinsurance market.”

Mining for growth

The launch follows a message long championed by Jennifer Braney, Gallagher Re’s head of international cyber, who has repeatedly urged the industry to “dig deeper” for growth.

Speaking to the publication at Baden-Baden earlier this year, Braney warned that too many cyber carriers were still “panning for gold” in saturated markets rather than mining new seams of international and alternative product business.

“The cyber market needs to take the supply of capacity and capability to where demand will be,” she said at the time. “Uncovering the rich seams of new business that lies beneath the surface of international markets will be a challenging process. However, with persistence and effort, there are huge untapped opportunities waiting to be discovered.”

Gallagher Re’s new APAC framework embodies that philosophy. Rather than competing with existing retail facilities or traditional distribution routes, it creates a bridge between reinsurers, cedants and brokers, helping capacity reach fast-developing economies where cyber insurance penetration remains low but exposure is rising fast.

Addressing Asia’s cyber protection gap

Asia now accounts for roughly one-third of global cyber incidents, driven by ransomware, data-privacy breaches and the rapid evolution of digital regulation. Yet cyber insurance penetration remains strikingly low, particularly among SMEs and mid-sized firms that underpin much of the region’s economy.

That imbalance between exposure and coverage has widened as remote work, cloud migration and digital supply chains have accelerated since the pandemic. Braney said sustainable growth depends on balancing supply and demand while securing capital that stays committed through market cycles.

“Historically, the market’s response to major loss events has been reactive – pushing up rates and shrinking exposure,” she noted in Gallagher Re’s paper ‘The quest for growth’. “We are advocating for a different approach; growing market aggregates and increasing written premiums, rather than just adjusting rates.”

Building diversification and resilience

The core objective of the framework is diversification, both geographically and by product type. Gallagher Re’s research has shown that cyber risk varies significantly by region and industry, creating natural diversification benefits across portfolios.

“Taking supply to where demand is and will be, is key to growing the international cyber market.”

That regional diversification, the firm argues, will not only stabilise results but also attract more consistent capital to the class. The framework has already drawn interest from Tier-1 reinsurers and domestic markets and will prioritise APAC-based capacity to ensure better service within local time zones and stronger regional leadership.

While Asia-Pacific is the starting point, Gallagher Re plans to replicate the model across other international markets, using lessons learned from this rollout to drive global innovation in cyber reinsurance.

Braney said the initiative reflects a long-term vision for a more connected and resilient cyber ecosystem. “Connecting capacity and capability to distribution, and taking supply to where demand is and will be, is key to growing the international cyber market,” she said.

“We are thrilled to be on the ground in SIRC when we launch this initiative, and excited to engage further with the market on this solution.”

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