Cyber risk is potentially higher in Asia Pac than other regions but a lack of disclosure requirements makes this difficult to monitor, says S&P Global Ratings
APAC reinsurers seeing rising premium rates, adequate capital buffers, and improved investment returns — but still face risks, including costlier retrocession and heightened market volatility.
Despite economic turbulence and sector-wide risks, S&P Global Ratings has improved the sector's outlook, from negative, attributing the upgrade to underwriting performance and strategic pricing.
Major Chinese insurers are unlikely to face a crisis due to the country's falling property market, however the extent of exposure for smaller and privately backed players is unclear.
The global cyber insurance market is expected to reach $23bn by 2025, but will require a high degree of market collaboration to maintain healthy profit margins.
Beijing experienced its worst rainfall for 140 years and S&P Global Ratings warned P&C insurers to anticipate increased demand amidst an underwriting hit.
The life market is set to benefit from the country's low penetration, but P&C insurers face challenges such as competitive pricing and rising reinsurance costs.
