With nat cat losses on the rise in the region, direct insurers are keen to offload their risk to global reinsurers.
"The regulator is aware of such an issue. Hence, if they reduce the capital charge for overseas reinsurers, it could potentially incentivise the cedants to spread their risk, not only in China but also out of China. At the same time, for a nat cat prone country, like China, the losses can be spread elsewhere," said Kenrick Law, regional chief executive at Allianz Re.
Reproduced with permission of Insurance Asia News, May 2022