Gallagher Re Targets APAC Cyber Sector with Adaptive Reinsurance Structure
Gallagher Re has introduced a flexible cyber reinsurance framework designed to support a variety of reinsurance models—from facultative to treaty—and cover products such as cyber, technology errors and omissions, and cyber property damage. This framework aims to address the evolving needs of the APAC cyber insurance market.
Framework Features and Market Adaptation
The framework is intended to align cyber capacity with actual demand across diverse market segments, including personal lines, small and medium enterprises, midmarket, and large corporations. It offers a structural basis to create tailored cyber insurance solutions suited to different client requirements and market conditions.
Gallagher Re explained that the system supports multiple structures like white labeling, facultative, and treaty reinsurance, providing reinsurers and cedants with a modular approach adaptable to local market demands.
Initial Market Expectations
- Facultative reinsurance lines are expected to start at a minimum of $15 million.
- White labeling and treaty placements are anticipated to begin at around $10 million.
Strategic Growth Approach
"Growth in the cyber market will depend on tapping international markets and developing new products rather than focusing solely on saturated regions."
Gallagher Re pointed out that their new framework helps the industry to “mine for growth” rather than “pan for growth,” fostering a more sustainable way to expand cyber capacity.
Summary
This adaptive framework by Gallagher Re provides a versatile solution to meet the diverse and growing demands of APAC’s cyber insurance market, promoting sustainable expansion through innovation and international collaboration.