Gallagher Re Targets APAC Cyber Sector with Adaptive Reinsurance Structure
Gallagher Re has introduced a flexible cyber reinsurance framework designed to support various reinsurance models, including facultative and treaty, as well as products like cyber, technology errors and omissions, and cyber property damage. This new structure aims to address the changing needs of the APAC market.
Framework Features and Market Segments
The framework connects cyber reinsurance capacity with actual demand across multiple market segments such as personal lines, small and medium enterprises, midmarket, and large corporations. It provides a solid foundation to create cyber solutions tailored to different client requirements and diverse market conditions.
Flexible and Modular System
Gallagher Re's system accommodates various structures like white labeling, facultative, and treaty placements. This modular design allows both reinsurers and cedants to adapt the system to specific local needs. Initial projections include a minimum line size of $15 million for facultative reinsurance and at least $10 million for white labeling and treaty placements.
Strategic Growth Approach
Gallagher Re stated growth in the cyber market "will depend on tapping international markets and developing new products rather than focusing solely on saturated regions."
The company added the framework enables the industry to “mine for growth” rather than “pan for growth,” promoting a sustainable method for cyber capacity development.
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Author's Summary: Gallagher Re's innovative and adaptable cyber reinsurance framework is designed to meet diverse APAC market demands and promote sustainable growth by expanding internationally and developing new products.