Currently, APAC is growing faster than Hannover Re’s core markets in Europe and the Americas. At the same time, the insurance penetration rate is still below that of more developed markets. This leaves the insurance market poised for even stronger growth, forecast to be at least of comparable size to Europe and the Americas within the next decade. APAC will thus continue to grow in importance and is set to play a significant part in the global economy going forward.
Hannover Re has launched an initiative to extend the growth potential of our business in the booming APAC region and stimulate a concerted Group effort to develop our footprint for property & casualty business as well as life & health business in line with macro-economic trends.
Significant profitable growth expected
The demographic development as well as the dynamics of the digital transformation in the APAC region are two trends we perceive to drive business growth significantly in the future. We also see opportunities in closing the protection gap in countries with low insurance penetration by sharing our profound product know-how with the clients in the region and providing diversified solutions based on our professional expertise in the insurance industry.
Building on long-standing client relationships, Hannover Re focusses on the implementation of 16 individual business growth initiatives encompassing both Property & Casualty as well as Life & Health reinsurance. Based on these initiatives, we expect an average gross premium growth of 11% in P&C and 7% in L&H over the next years. Detailed information on our expectations was provided on Hannover Re’s Investors’ Day.
Property & Casualty business brings services closer to clients
In order to become an even more client-centric reinsurer in this important market, we are dedicated to bringing the underwriting authorities and services closer to our clients: we are strategically investing in the personnel resources and infrastructure at our existing locations in the APAC region, empowering our staff of treaty and facultative P&C business there and securing a short and responsive decision-making process.
Our specialists can offer even faster response times and excellent security levels, supported by our global network of experts in the spirit of our Corporate Purpose Statement: Beyond risk sharing – we team up to create opportunities.
The Branch Offices will write new business and renew existing contracts currently written by Hannover Re Germany effective from 01.01.2021 and thereafter.
The future business responsibilities are:
Japan: The market responsibility for treaty business will be assumed by the Malaysian Branch in Kuala Lumpur; facultative business will follow in 2022. The Japanese natural catastrophe underwriting mandate of Hannover Re Bermuda will be extended.
Korea: The market responsibility for treaty and facultative business will be assumed by the Malaysian Branch in Kuala Lumpur.
Greater China: We will extend the mandate of the Shanghai Branch for all Greater China territories with regard to treaty and facultative P&C underwriting.
Existing business: The run-off of all existing business closed before 31.12.2020 with the Hannover Re Germany stamp will be administered in Hannover Re Germany until final contractual extinction.
Specialty lines: The set-up, contacts and processes with respect to specialty business will not change.
Life & Health business
On the life and health side, we will continue to operate with the office network established around the globe. We serve our clients through local staff who are empowered and who speak our “clients’ language”. For many years, our local offices have operated in the market as a network acting as a single team. Our clients can be assured that we are highly concentrated on their specific needs, and that we are exceptionally agile and responsive. Whilst offering attractive traditional life & health solutions, we will focus on promising opportunities arising from needs for Financial Solutions, Critical Illness / Personal Accident and Short-term Health coverages.