Go with the flow: New reinsurance solutions improve capital efficiency in Asia

  • Michael Thomas

    RGA has proven we can anticipate and develop solutions in these competitive markets while responding to regulatory changes in the region.

    Michael Thomas

    Vice President, Business Development, GFS Asia

Asian insurance product markets are extremely competitive, with providers constantly on the lookout for new ways to differentiate and improve their customer propositions. Meanwhile, risk-based regulatory regimes in Asia are pressuring insurers across the region to carefully consider profitability, capital, and risk management. This has given rise to new reinsurance arrangements that can achieve the dual aim of improving capital efficiency while also helping improve the customer proposition.

As a U.S.-based reinsurer and an established innovator, RGA is well-positioned to bring pioneering new financial solutions to the region.

RGA’s new business flow solutions offer a good example. Through a flow solution we work with clients to develop a new product (or modify an existing product) which is then reinsured immediately as the policies are sold by the client, providing just-in-time risk and capital support, leveraging our market-leading underwriting capabilities, and sharing risk across the entire spectrum of the product. Our clients are thus able to bring a new generation of competitive products to market with less risk and improved economics under new regulatory regimes. After years of foundational work with clients, the Global Financial Solutions team executed a number of flow transactions across Asia in 2020.

Flexibility is essential in order to adapt to different market needs around the region. For example, some markets can accommodate product repricing every two weeks, while other markets require insurers to keep new product iterations on the shelf for at least 12 months.

RGA has proven we can anticipate and develop solutions in these competitive markets while responding to regulatory changes in the region. Our consistent, disciplined approach, global expertise, financial strength, and strong traditional underwriting capabilities provide a stable platform that enables continued success for our clients and added benefits for their customers.

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      Karen Edgerton

      Senior Vice President, Stable Value, Global Financial Solutions

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