Tony Gallagher on Key Trends in Asia Pacific
He discusses retentions, program structures and other issues.
In this video interview with The Insurer TV, Guy Carpenter’s Tony Gallagher, CEO, Asia Pacific, talks about key trends he has observed in the Asia Pacific market ahead of the Singapore International Reinsurance Conference.
On retentions, Tony noted that a lot of losses through the year were absorbed by insurers as opposed to reinsurers. This is prompting buyers to consider their retention levels and whether additional conversations will be needed connected to program structures.
“Many of the markets I speak to that have paid increased reinsurance costs, they haven’t got the recoveries they thought (they would) under the structures, so what’s the new normal for them?” he said. “Now that’s a dialogue between the markets and the reinsurers to make sure that they’ve got the right structure for their program and the right pricing. Now, what drives that is going to be loss activity.”
Tony also noted how parametric solutions play a key role in addressing coverage gaps in the region.
“It’s a concept really, where you’ve got models and you’re able to measure events to create triggers, which provide capacity for event,” he explained. “Parametric is a wonderful tool as we build out this increased awareness of insurance and individuals buying insurance.”