In a recent Reinsurance News interview, Amitabha Ray, Chief Executive Officer of Swiss Re India branch, shared his insights on the evolving landscape for reinsurance in 2026, with a particular focus on the Indian and broader Asia Pacific markets.
“What we’re seeing ahead of renewals is not one single cycle but a very diverse market landscape, where different lines of business are at different stages of the underwriting cycle. Some economies are still adapting to higher loss costs and inflationary pressures, while others are stabilising and preparing for future growth. This is likely to be reflected at 1/1 renewals where more differentiation by line, geography and portfolio quality, and risk adequate terms and conditions rather than broad-based softening, are expected,” Ray continued.
In India, the reinsurance market is expected to continue its rapid growth trajectory, though competition is intensifying. “The establishment of new domestic reinsurers and the expansion of the International Financial Services Centre (IFSC) in Gujarat are reshaping the market landscape, attracting global players and increasing capacity,” he noted. New areas of demand, including cyber, surety, and renewable energy, are emerging as insurers seek coverage for evolving risks.
Ray highlighted the regulatory environment as another key factor shaping the market. “The upcoming shift toward a risk-based capital regime, as part of IRDAI’s broader regulatory reforms, is expected to enhance capital efficiency and open new avenues for reinsurers to innovate and expand their footprint in India.” Reinsurers are expected to play a crucial role in strengthening resilience, particularly in addressing exposure to natural catastrophe “risk hotspots” like Gujarat, Maharashtra, and Tamil Nadu.
For Swiss Re, the focus over the next 12 months remains on fundamentals and long-term client engagement. “Improving underwriting performance remains critical to ensuring long-term sustainability and attracting reinsurance capacity in the market. At Swiss Re, we remain focused on the fundamentals, maintaining risk-adequate underwriting in our approach and engaging closely with our clients to build long-term resilience,” Ray explained.
The company emphasises early and transparent dialogue, tailored local solutions, and a partnership mindset that supports sustainable growth through shifting market cycles. This approach includes enhancing technical pricing, improving data transparency, and applying prudent portfolio management practices.
The reinsurance market faces a mix of challenges and opportunities at the close of 2025. Ray noted that demand in APAC will be driven by geopolitical instability, persistent economic uncertainty, and natural catastrophe losses, which average over USD 100 billion annually. “In 2024, global natural catastrophes caused USD 318 billion in economic losses, of which only 46 percent were insured. In Asia, the protection gap stood at roughly 84 percent, meaning only about 16 percent of nat cat losses (~USD 66 million) were insured,” he said.
Specialty insurance lines are particularly exposed. “Amid policy uncertainty and economic fragmentation, specialty insurance lines such as marine, engineering, and credit & surety are directly exposed to the economic impact of disrupted trade. Marine insurance is directly impacted by reduced global trade flows and shipping volumes, lowering insured exposure while raising risks from port delays and route disruptions.”
“Meanwhile, engineering insurance faces pressure from rising construction costs driven by more expensive imported machinery and materials as well as a general rise in inflation, which increases claims severity. Credit & Surety insurance is also an area of concern due to the heightened risks of defaults and project cancellations as economic activity slows,” he explained.
Certain sectors, such as aviation and agriculture, may face less disruption, though costs could rise due to higher inputs like aircraft parts, maintenance delays, fertilisers, and machinery.
He continued: “While cyber insurance is not directly linked to policy uncertainty, geopolitical fragmentation does increase systemic cyber risk exposure, making cyber lines more strategically important.”
At the same time, demand for business interruption and trade disruption coverage is expected to grow as companies seek stronger protection. Ray concluded, “Overall, the specialty sector faces elevated risk but also a chance to support resilience in an increasingly fragmented global economy.”
About the Author
