Global reinsurance brokerage Gallagher Re has launched an innovative framework designed to transform the cyber reinsurance landscape in the Asia Pacific (APAC) region.
Gallagher Re sees the greatest opportunity for the cyber market in international expansion and the development of new cyber products, rather than relying on saturated markets.
“This newly developed facility framework serves as the infrastructure to support this vision,” the broker stated, “enabling the industry to ‘mine for growth’ rather than ‘pan for growth’.”
The framework is designed to align cyber capacity with cyber need across all market segments, from personal lines to SMEs, midmarket, and large enterprises.
This flexible framework can also accommodate all structures of cyber reinsurance, including whitelabelling, facultative, and treaty, and a wide range of cyber products, such as Cyber, Technology Errors & Omissions (Tech E&O), and Cyber Property Damage (Cyber PD).
“The framework structure will have lead and follow capacity for each section. The framework is designed to adapt flexibly to the needs of individual cedants and regions. Initial expectations include a minimum USD 15 million line for facultative reinsurance and up to a minimum of USD 10 million for whitelabelling and treaty,” a Gallagher Re spokesperson explained.
The broker’s strategy involves expanding this cyber reinsurance framework beyond APAC to other international markets, leveraging the insights gained from this process.
The framework is designed to avoid competition with existing retail broker facilities and traditional distribution channels, focusing instead on creating more opportunities for growth and collaboration.
“APAC’s rapid digital growth presents both opportunities and challenges in managing cyber risks. This framework is a testament to Gallagher Re’s dedication to delivering innovative and flexible solutions that address the unique needs of the region. By aligning global capacity with local demand, we are paving the way for sustainable growth in the cyber reinsurance market,” said Mark O’Brien, Head of APAC Gallagher Re.
“We are thrilled to be on the ground in SIRC when we launch this initiative. Connecting capacity and capability to distribution, and taking supply to where demand is and will be, is key to growing the international cyber market. We are excited to engage further with the market on this solution,” said Jennifer Braney, Head of International Cyber, Gallagher Re.
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