Softening primary markets demand smarter structures, not just price: Gallagher Re

Capital, regulation and data are moving in a more coordinated direction across key Asian markets, Gallagher Re’s Roshan Perera tells SIRC Today.

Key points:
Regulatory frameworks harmonising
Structure matters more than price
M&A: ‘active pipeline’ under review

Asia’s reinsurance market is often seen as wide, complex and fragmented. Roshan Perera, head of strategic solutions, APAC at Gallagher Re, is keen to challenge that perception. Beneath the surface, he says, most major markets are quietly moving towards greater alignment in regulation, capital is being deployed more deliberately and data is becoming central to how insurers buy protection.

“We would challenge the assertion that the regulatory frameworks are fragmented,” he told SIRC Today. “Rather, there is a move towards harmonisation with almost all the key markets in the region adopting or preparing for consistent reform.”

That shift is not just technical, it changes how decisions are made. When rules line up, insurers can plan capital more confidently. Reinsurance programmes become easier to compare and improve. The result is more focus on structure, rather than price alone. 

Growth has slowed, but not stalled. “Macroeconomic challenges are impacting growth rate rather than absolute growth,” Perera said. Global trade tensions and higher costs have tempered expansion, yet the region continues to grow. For buyers, that means fewer bold moves and more careful choices. For reinsurers, it signals a shift from volume to disciplined underwriting. 

“With markets transitioning, the value of market insights is increasing,” he added, noting Gallagher Re is helping clients triangulate market views and monitor competitive signals to support evidence-based decisions.

“We remain close to these developments across the region and have developed propositions and solutions to support the transition – whether that is helping clients navigate the advancing regulatory requirements, or reinsurance solutions to address capital optimisation.”

Pricing easing but pressure remains

Looking to the January renewals, Perera expects conditions to loosen slightly. “We expect global capacity supply/demand dynamics to ease pricing across the region and for reinsurers to entertain lower entry points, subject to adequate terms.”

But he cautions against complacency. “Despite the expected ease in reinsurance pricing, we see a competitive direct market, providing a challenge to clients and are therefore encouraging structural reviews as a complement to price.”

Natural disasters still shape the market more than any other factor  in Asia-Pacific. Typhoons, floods, earthquakes and an increasing share of secondary perils continue to test resilience.

“We can help our clients through a continued focus on risk-based underwriting, accumulation control and natural catastrophe risk assessment,” Perera said.

Technology is reshaping how risk is assessed and reinsurance is placed. The fundamentals – reliable exposure data, clean submissions and sound models – still matter. What is new is how seamlessly these components are being connected.

Gallagher Re is “investing heavily” in what Perera calls a “connected ecosystem” that links prospecting, submissions, quotes, placement and claims. Its forthcoming Insight platform aims to integrate core systems with AI, analytics and geo-visualisation, so brokers and clients can interrogate portfolios in real time and move faster. 

“Data has always been an integral part of our solutions,” Perera said. “We leverage machine learning tools, geo-visualisation and catastrophe models and solutions to help clients understand their risk and drive profitable growth.”

Growth and M&A: capability over geography

Gallagher Re’s strategy in Asia-Pacific follows a clear principle: capability first, footprint second. The firm has secured a reinsurance broking licence in China, added people in Singapore and Australia and recently acquired Steadfast Re. 

“There is significant and ongoing investment in both our platform and our teams across the region,” Perera said. “We are focused on growth opportunities that enhance both proposition and margin. These are the defining factors of any acquisition interest, rather than location or type of company.”

He confirmed deal activity remains open. “We have an active pipeline of opportunities that are under review.”

“Our competitors are simply not organised in the same way we are to deliver solutions.” 

Competition among brokers is intensifying, but Perera believes Gallagher Re’s internal set-up gives it an edge. “Our structure removes internal friction and allows our market-leading advocates focus solely on our clients’ challenges and motivations, regardless of location,” he said. 

“We are entirely client-centric, looking at providing solutions to individual client motivations, agnostic to product or geography and supported by proven transactional excellence.”

“Our competitors are simply not organised in the same way we are to deliver solutions,” he asserted.

Talent is a key part of this. Asia needs leaders who can apply global thinking locally, understanding culture, regulation and market practice. Perera says the firm is investing in both global and local skills to maintain that balance. 

“The ability to leverage global knowledge and expertise, bringing developments and market-leading propositions into the diverse Asian landscape while adapting for local cultures, nuances and dynamics, is core to Gallagher Re’s operation.”

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