Gallagher Re Targets APAC Cyber Sector with Adaptive Reinsurance Structure
Tier 1 reinsurers have shown early interest in the Asia-Pacific (APAC) region following the launch of Gallagher Re’s new cyber reinsurance framework. This flexible structure supports a variety of reinsurance models, from facultative to treaty, and covers products such as cyber, technology errors and omissions, and cyber property damage. It is designed to address the evolving needs of the APAC market.
Framework Features and Market Coverage
Gallagher Re’s framework aims to align cyber capacity with actual demand across all market segments, including personal lines, small and medium enterprises, midmarket firms, and large corporations. It provides a solid foundation for developing tailored cyber solutions that suit varying market conditions and client requirements.
Modular and Adaptable Design
The framework accommodates different structures such as white labeling, facultative, and treaty, creating a modular system. This adaptability allows reinsurers and cedants to customize offerings according to local market needs, enhancing flexibility and responsiveness.
Capacity Expectations
- Minimum $15 million line for facultative reinsurance
- At least $10 million for white labeling and treaty placements
Strategic Market Growth Approach
Gallagher Re emphasized that growth in the cyber market relies on expanding into international markets and creating new products, rather than concentrating on saturated areas. The framework is designed to enable the industry to “mine for growth” instead of “pan for growth,” supporting a sustainable development of cyber capacity.
“The framework enables the industry to ‘mine for growth’ rather than ‘pan for growth,’ allowing for a more sustainable approach to cyber capacity development.”
Sign up to receive the latest reinsurance news twice a week.
Author's summary: Gallagher Re has developed a versatile cyber reinsurance framework to meet APAC’s diverse market needs, promoting sustainable growth through international expansion and product innovation.
Would you like the summary to be more detailed or concise?