Facultative reinsurance is becoming a more strategic element for insurers in the Asia-Pacific region, according to industry leaders. In a discussion with Intelligent Insurer, Cynthia Cui, Managing Director and Head of APAC Fac Reinsurance, described how the approach is shifting in response to changing risk landscapes.
“Fac purchasing has become a strategic tool for navigating elevated risk environments and secondary perils. In APAC’s rapidly urbanising cities, fac helps manage accumulation and preserve solvency when typhoons, floods or earthquakes strike,” said Cui.
Luigi Boglione, Managing Director and Head of International Fac, emphasized the benefits of an integrated approach: “In this shifting environment, an integrated model - pairing fac, treaty, capital markets and analytics - is valuable for clients globally. This is especially effective in developing markets, where reinsurers deploy capital and transfer knowledge, strengthening local ecosystems.”
The facultative reinsurance market in Asia-Pacific is evolving from being primarily transactional to taking on a more strategic role. This shift aims to connect global expertise with local implementation as clients address increased exposure to natural disasters and invest in infrastructure projects across sectors such as renewables and semiconductors.
For further details on the roundtable discussion with Intelligent Insurer, readers can access the full conversation through their website.