Gallagher Re launches cyber reinsurance framework to boost APAC capacity

Gallagher Re has unveiled a new framework to bridge the gap between cyber reinsurance supply and demand in the Asia Pacific region.

The broker said the initiative is designed to align global capacity with the growing cyber needs of APAC insurers and reinsurers.

It plans to offer a flexible structure that can support cedants across market segments from personal lines to SMEs, mid-market and large corporates.

The facility will be able to accommodate different reinsurance structures, including treaty, facultative and white-labelling arrangements.

It will also cover a wide range of products such as cyber, technology errors and omissions, and cyber-related property damage.

Gallagher Re said the framework has provision for both lead and follow capacity and will adapt to the needs of individual cedants and territories.

Initial expectations include a facultative line of at least $15m and a minimum of $10m for treaty and white-labelling proposals.

The broker said the facility is intended to help the market “mine for growth” rather than “pan for growth,” by unlocking new international capital rather than relying on saturated domestic markets.

Interest has already been shown by tier one reinsurers and domestic markets, the broker observed, with a focus on deploying APAC-based capacity and expertise.

Gallagher Re plans to replicate the structure in other regions once established in Asia Pacific, according to the broker.

The framework is not intended to compete with retail broker facilities or traditional distribution channels, Gallagher Re said.

Jennifer Braney (pictured), head of international cyber at Gallagher Re, said launching the initiative at SIRC would help build momentum.

“Connecting capacity and capability to distribution, and taking supply to where demand is and will be, is key to growing the international cyber market,” she said.

Mark O’Brien, head of APAC at Gallagher Re, said rapid digitalisation in the region is expanding both opportunity and exposure.

“APAC’s rapid digital growth presents both opportunities and challenges in managing cyber risks,” he said.

“This framework is a testament to Gallagher Re’s dedication to delivering innovative and flexible solutions that address the unique needs of the region.

“By aligning global capacity with local demand, we are paving the way for sustainable growth in the cyber reinsurance market,” he added.