Economic growth in the Asia Pacific region has resulted in myriad opportunities for life insurers who operate there. In order to fully capitalize on this potential growth it is essential that those life insurers have access both to the very best data and local expertise, as well as a broad view of the reinsurance market, according to Nigel Sedgwick, Head of Life Reinsurance at Willis Re.
He said: “As a result of the speed at which many of these economies are growing, it is imperative for insurers to fully understand the nuances and trends of their markets, and access to the right data and risk management platforms is crucial. In the life insurance sector in particular, many of these resources are provided by global reinsurance companies.
“As a result, a symbiotic relationship often evolves between a life insurer and one reinsurer. This is understandable, given the benefits that an insurer enjoys in terms of access to the sophisticated expertise, data and systems that the reinsurer can provide. That doesn’t mean, however, that such a relationship has to remain exclusive; there is a growing depth in the life reinsurance market beyond the half dozen or so big established players.
“Broadening access to the reinsurance markets can have many advantages, including price competition, new ideas, market knowledge, etc. Variety is the spice of life, after all. While there may be arguments that such an expansion will be slow to happen, one is tempted to look at the non-life sector, which is significantly more diversified, and draw some simple conclusions.”
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