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 the region for property & casualty business as well as life & health business in line with macro-economic trends.
Property & Casualty business - portfolio decentralisation
In order to become an even more client-centric reinsurer in this important market, we intend to bring 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 and will pursue a decentralised underwriting approach for all treaty and facultative P&C business currently underwritten at the Hannover Office in Germany.
Our local offices can offer fast response times and excellent security levels; we will also provide our services with the full expertise and support of our network of worldwide specialists 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 on a decentralised basis. 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 also focus on promising opportunities arising from needs for Financial Solutions, Critical Illness / Personal Accident and Short-term Health coverages.