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 and products, addressing the evolving needs of the Asia-Pacific (APAC) market. This structure accommodates a range of coverage types, including cyber risk, technology errors and omissions, and cyber property damage.
Framework Features
The new framework aims to connect cyber capacity with actual market demand across all segments:
- Personal lines
- Small and medium enterprises
- Midmarket companies
- Large corporations
It provides a foundation for tailored cyber solutions adapting to different market conditions and client needs.
Modular and Flexible Structure
Gallagher Re explained the framework supports multiple structures, including white labeling, facultative, and treaty reinsurance. This modular system can be customized by reinsurers and cedants to fit local preferences and requirements.
Initial Capacity Expectations
- Facultative reinsurance line starting at $15 million
- White labeling and treaty placements beginning at $10 million
Gallagher Re emphasized that “growth in the cyber market will depend on tapping international markets and developing new products rather than focusing solely on saturated regions.”
The framework is intended to help the industry “mine for growth” with a sustainable approach to expanding cyber capacity, rather than merely “pan for growth.”
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Summary: Gallagher Re’s adaptive cyber reinsurance framework offers a modular, flexible solution designed to address diverse APAC market needs and promote sustainable growth through innovative international product development.