SIRC: Reinsurance in APAC set for growth amid rising insurance demand: Malaysian Re
November 4 2025 by Joana Nguyen
Rising insurance penetration and growing need to close the protection gap across both life and non-life segments will fuel growth for reinsurers in Asia Pacific, according to Ahmad Noor Azhari Abdul Manaf, president and CEO of Malaysian Re.
“In Malaysia, robust infrastructure and healthcare projects, ongoing healthcare financing reforms present opportunities for (re)insurance,” he said.
“Across Asean, demand for emerging specialty classes such as cyber, health, and climate-related insurance continues to increase as businesses and governments strengthen their resilience efforts.”
Meanwhile, the APAC reinsurance market, including Malaysia, is expected to remain generally soft over the next 12 months, supported by abundant capital and heightened competition among reinsurers
“Pricing momentum will continue to favour cedents, with greater flexibility expected in negotiations. The overall market environment should remain stable, aided by relatively mild catastrophe activity in early 2025,” said Ahmad Noor Azhari.
However, reinsurers will need to continue navigating a complex risk landscape.
“Challenges include increasingly soft market, pricing, heightened climate and catastrophe volatility, evolving regulatory frameworks, and demographic shifts that are reshaping longevity and healthcare financing. Geopolitical and trade uncertainties also require careful management,” he said.
“These dynamics call for careful portfolio management and a measured approach to balancing growth with long-term resilience.”
Cedent concerns
Meanwhile, for cedents, concerns lie in not only pricing volatility but also structural developments within each market, according to Ahmad Noor Azhari.
“In the short term, we believe that cedents are likely to remain concerned about pricing volatility across different lines, inflationary pressures, and the adequacy of coverage for emerging risks like cyber and climate-related perils
“Over the longer term, cedents are watching several structural developments with caution. Key among them is evolving regulatory frameworks, such as solvency requirements and the rise of climate-related disclosure requirements, which will influence capital management and underwriting practices.”
Besides, rising cat volatility worldwide, geopolitical uncertainties and trade disruptions, which will affect underwriting margins and portfolio strategies, are also weighing on cedents’ minds, he added.
Malaysian Re’s strategies
Despite increasing competition and softening market conditions, Malaysian Re’s strength lies in deep local knowledge and strong relationships, according to Ahmad Noor Azhari.
“As the largest reinsurer in Malaysia and the leading national reinsurer in Asean, we have built strong partnerships with local and regional insurers and reinsurers, giving us both scale and credibility in the markets we serve,” he said.
“Our retakaful division continues to lead innovation in this growing segment, while our active involvement in national initiatives has strengthened our legitimacy and trust among regulators and industry stakeholders.”
“We will continue doing what we have always done, which is standing by our cedants and supporting them through changing market conditions.”
Ahmad Noor Azhari Abdul Manaf, Malaysian Re
The reinsurer will continue expanding its international footprint will strengthening its domestic services.
“Domestically, we will keep investing in national schemes and partnerships that reinforce market resilience, such as agricultural protection, Perlindungan Tenang, and other financial inclusion and risk-pooling initiatives.”
Perlindungan Tenang is a national initiative of Malaysia that aims to expand the availability and quality of insurance and takaful solutions to meet the needs of the unserved and underserved segments of the population.
“Regionally and internationally, we are increasing our footprint across Asean and selected markets in Europe, the Americas, and Oceania,” he said, adding that the company is also diversifying into growth areas such as specialty lines, family retakaful, facultative protection, and cyber reinsurance.
Across Asean, Malaysian Re will maintain leadership in collaborative efforts, including the Asean Renewable Energy Pool (AREP) and technical workshops that help partners build capability and address emerging risks such as climate and renewable-energy exposures, Ahmad Noor Azhari added.
“We will continue doing what we have always done, which is standing by our cedants and supporting them through changing market conditions,” he said.
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