APAC fertile ground for reinsurance market: Hannover Re

The German reinsurer anticipates growth in the P&C and health reinsurance.

The Asia Pacific is evolving into one of the largest global insurance markets with promising business opportunities in the property and casualty reinsurance, as well as health and provision sector, according to a report by the German reinsurer, Hannover Re.

The report said that this comes in part because the insurance density in APAC is still lower than in more mature markets. Hannover Re said that appreciable growth rates can be anticipated over the medium to long term, which will also benefit reinsurers.

“For the upcoming rounds of renewals in the Asia-Pacific region on 1 January 2022 and 1 April 2022, Hannover Re anticipates stable reinsurance conditions and prices with more pronounced positive changes for treaties that were affected by the pandemic or other losses,” the reinsurer said.

Meanwhile, the Hannover Re predicts a continuing trend towards rising prices in P&C reinsurance in the insurance industry.

Treaty renewals for 2022 in P&C reinsurance is expected to maintain positive pricing, especially in loss-affected lines and regions. At the same time, conditions are also likely to show further improvement on account of the considerable uncertainties, most notably in relation to future pandemics and cyber attacks.