Fitch Ratings has pointed out that the drastic rise in natural catastrophes in Asia-Pacific during the last two years has pushed reinsurers to reexamine their portfolio and review their underwriting policy in the region. This move is designed to enable reinsurers to better address new catastrophes following the series of the large-scale events sustained by the region. Reinsurers are gradually decreasing their exposure to proportional treaties in favor of the non-proportional ones. The decline of cash inflow will be offset by better profitability. Fitch has also noted that demand for the increase of reinstatement of cover in the event of catastrophe is going up. Tariff increases in the affected regions have been noted: + 30% to 50% in Japan for earthquakes, +15% for storms and floods, and over 100% in New Zealand for fire policies. Special care is given to reinsurers’ rating. The agency has indicated that the quality of the data provided by insurers remains, nonetheless, troublesome.
