Gallagher Re Targets APAC Cyber Sector with Adaptive Reinsurance Structure
Gallagher Re has introduced a new cyber reinsurance framework featuring a flexible structure that supports diverse reinsurance models, from facultative to treaty. This framework covers products like cyber coverage, technology errors and omissions, and cyber property damage, aiming to address the evolving needs of the APAC market.
Framework Designed to Align Capacity and Demand
The framework connects cyber capacity with actual demand across all market segments, including personal lines, small and medium enterprises, midmarket, and large corporations. It creates a structural base for tailored cyber solutions suited to varying market conditions and client demands.
Modular System Adaptable to Local Needs
Gallagher Re explained that the framework supports various structures such as white labeling, facultative, and treaty placements. This modular approach offers flexibility for reinsurers and cedants to customize solutions according to regional requirements.
- Expected minimum facultative reinsurance line: $15 million
- Minimum lines for white labeling and treaty placements: $10 million
Growth Strategy Focuses on International Markets
According to Gallagher Re, sustainable growth in the cyber insurance market depends more on expanding into international markets and launching new products rather than concentrating on saturated regions.
“The framework enables the industry to ‘mine for growth’ rather than ‘pan for growth,’ allowing for a more sustainable approach to cyber capacity development.”
This approach aims to foster steady and adaptable development within the growing APAC cyber insurance sector.
Author’s Summary
Gallagher Re’s adaptive cyber reinsurance framework targets APAC’s diverse market by offering modular, flexible solutions to drive sustainable growth beyond saturated regions.