A new framework designed to transform the cyber reinsurance landscape in the Asia Pacific (APAC) region has been launched by global reinsurance brokerage and risk management firm Gallagher Re. The new initiative aims to align the growing demand for cyber reinsurance in APAC with global capacity, offering a flexible and comprehensive solution to meet the region’s unique needs.
According to Gallagher Re the untapped potential of the cyber market lies in fostering growth through international markets and innovative cyber products rather than relying on saturated markets. The newly developed facility framework serves as the infrastructure to support this vision, enabling the industry to “mine for growth” rather than “pan for growth”.
A press release issued by the brokerage said, “The framework is designed to match cyber capacity with cyber need, across all market segments, from personal lines to SMEs, midmarket, and large enterprises.
“The flexibility on offer will also enable the framework to encompass all structures of cyber reinsurance, including white labelling, facultative, and treaty, and a wide range of cyber products, such as cyber, technology (Errors & Omissions) and cyber property damage.”
The framework has already garnered active interest from Tier 1 reinsurers and domestic markets, and will prioritise APAC-based capacity and capability, ensuring better servicing through local time zones and addressing clients’ desire for regional leadership in this area.
Gallagher Re head of APAC Mark O’Brien said, “APAC’s rapid digital growth presents both opportunities and challenges in managing cyber risks. This framework is a testament to Gallagher Re’s dedication to delivering innovative and flexible solutions that address the unique needs of the region. By aligning global capacity with local demand, we are paving the way for sustainable growth in the cyber reinsurance market.”
The press release said while the initial focus is on APAC, Gallagher Re plans to replicate the framework in other international markets, leveraging insights gained from this process to drive global innovation in cyber reinsurance.
In addition, the framework deliberately avoids competing with retail broker facilities and traditional distribution routes, focusing instead on creating new opportunities for growth and collaboration.
The framework structure will have lead and follow capacity for each section. The framework is designed to adapt flexibly to the needs of individual cedants and regions. Initial expectations include a minimum $15m line for facultative reinsurance and up to a minimum of $10m for white labelling and treaty.
