Gallagher Re Targets APAC Cyber Sector with Adaptive Reinsurance Structure
Gallagher Re has launched a new cyber reinsurance framework featuring a flexible design that supports various reinsurance models, including facultative and treaty. This framework applies to products such as cyber insurance, technology errors and omissions, and cyber property damage, specifically tailored to meet the evolving demands of the Asia-Pacific (APAC) region.
Framework Tailored to APAC Market Needs
The framework aims to link cyber capacity directly to demand across a broad spectrum of market segments, such as personal lines, small and medium enterprises, mid-market, and large corporations. It establishes a foundation for developing cyber insurance solutions that are adaptive to diverse market environments and client requirements.
Modular and Adaptable Structure
- Supports multiple arrangements including white labeling, facultative, and treaty reinsurance
- Offers reinsurers and cedants a modular, customizable system suited for local conditions
- Initial line size expectations: minimum $15 million for facultative, $10 million for white labeling and treaty placements
Market Growth Strategy
Gallagher Re emphasizes that expanding the cyber market will rely on entering international markets and creating innovative products rather than focusing on already saturated regions.
“The framework enables the industry to ‘mine for growth’ rather than ‘pan for growth,’ allowing for a more sustainable approach to cyber capacity development.”
Summary
Gallagher Re’s new adaptive cyber reinsurance framework is designed to flexibly meet APAC market needs and foster sustainable growth through innovative, modular solutions.