A new report from global reinsurance broker Guy Carpenter has revealed that total Asia Pacific catastrophe limit purchased in 2013 has increased for the 10th year in a row.
The figures failed to keep pace with strong GDP growth in the region, according to the report.
In the report Guy Carpenter discusses some of the key factors that have fuelled this growth in limit over the past 10 years, notably an increasing focus on risk-based capital standards, growing awareness of non-modelled perils and rising insurance penetration in our emerging economies.
Despite this strong record of growth, the catastrophe limit has failed to keep pace with the rapid expansion of economies of the Asia Pacific region over the same period.
The report concludes that in many markets the purchase of insurance is still not a priority, while in others the product on offer does not satisfy demand.
With dedicated traditional reinsurance sector capital for Asia Pacific at a record high and with alternative capital seeking peak zone catastrophe opportunities in the region, Guy Carpenter predicts that the conditions are ripe for reinsurers to respond positively to this growth opportunity with innovative solutions.
James Nash, Guy Carpenter’s CEO of the Asia Pacific region, said: “Our region has demonstrated strong, solid growth in catastrophe reinsurance over the past ten years. Growth in total catastrophe limit purchased, however, has failed to keep pace with the stellar economic performance of the Asia Pacific region.”
“We remain committed, therefore, to helping our clients achieve profitable and sustainable growth with customised products and solutions that stimulate reinsurance buying.”
