13th September 2023

Asia’s Reinsurers Review Strategies amid hard market and climate risks-Fitch Ratings

Asia's reinsurers continued to experienced hard market conditions in 2023 to offset the impact of inflation-induced rising claims, climate change and financial market volatility, Fitch Ratings says in a new report. Retrocession rates also increased with limited capacity and, therefore, reinsurers are likely to enlarge their retention and will have to reshape their risk appetite.
Capitalisation and leverage metrics for Fitch-rated reinsurers in APAC remain commensurate with their ratings. Several regulators in the APAC region have been strengthening their regulatory capital requirements for reinsurers.
Fitch sees enhancing data analytics as crucial for reinsurers to understand the potential impact of their portfolio risk levels to optimise premium pricing. Reinsurers will have to optimise portfolio risk as they reassess their risk appetites to navigate the uncertainty amid higher weather-related losses and volatile economic conditions.

Fitch Ratings(340 articles)
Asia Pac Trends(6,951 articles)