With six of the ten largest life insurers globally, Asia offers reinsurers the chance to strike new asset intensive reinsurance deals before the pipeline in mature markets starts to dry-up.
P&C insurers in three major North Asian markets of China, Japan, and Taiwan hold almost three times the amount of regulatory capital for asset risk than US carriers.
The use of a mixture of market and book values for Japan’s current accounting and solvency regulatory regimes could put short terms strain on insurers’ balance sheets.
