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 has launched 16 individual business growth initiatives in 2019, encompassing both Property & Casualty as well as Life & Health reinsurance. Based on these initiatives, we expect an average gross premium growth of 13% in P&C and 5% in L&H over the next years. Despite all the developments with regard to Covid-19 and the war in Ukraine, we are sticking to our goals and initiatives.
In 2021, Hannover Re wrote a total of around EUR 6.3 billion in gross premiums in the APAC region. We exceeded our growth targets in both business segments in 2021: In Property & Casualty reinsurance, average gross premium growth stands at 17% and in Life & Health reinsurance at 9% compared to 2019.
Property & Casualty business brings services closer to clients
In order to become an even more client-centric reinsurer in this important market, we are 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 and empowered our staff of treaty and facultative P&C business to ensure short and responsive decision-making processes.
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.
Since January 1, 2021, our branches have been writing new business and renewing existing contracts that were previously written from Hanover.
The organisation, contracts and processes for specialty business have not changed.
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 sharpening our risk appetite for traditional life & health business solutions, we will focus even more on promising Financial Solutions opportunities in order to expand this line of business significantly.