Demand for catastrophe reinsurance in Asia Pacific lags behind GDP growth
Total Asia Pacific catastrophe limit purchased in 2013 increased but failed to keep pace with strong GDP growth, according to a report issued by Guy Carpenter. However, with record levels of traditional capital devoted to the region and alternative capital seeking peak zone catastrophe opportunities, Guy Carp predicts that the conditions are ripe for a broader reinsurance community to respond positively with innovative and customised solutions.
While this is the tenth year in a row that catastrophe limit increased it has failed to keep pace with growth in the rapidly expanding economies of the reigion over the same period. The disparity, according to Guy Carp, is due to the fact that insurance purchasing is not a priority in some markets, while in others the actual products on offer do not match demand.
James Nash, CEO of Asia Pacific Region, said: “as evidenced by Guy Carpenter’s Asia Pacific Limit and Rate On Line Index, 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 solution that stimulate re/insurance buying.”