SIRC 2026: Competition intensifies, but discipline holds for Hannover Re

November 3 2026 by

The Asia Pacific reinsurance market enters the upcoming renewal season competitive and flush with capacity, but Hannover Re is holding firm on underwriting discipline even as pricing pressure mounts on well-performing treaties, according to executive board member Sharon Ooi.

“In general, the market remains competitive with growing capacity. This continues to put pressure on pricing, particularly on well performing treaties,” Ooi said.

Yet demand for reliable protection remains robust across catastrophe-exposed territories.

“While competition is intensifying, demand for reliable reinsurance protection remains vital in all territories exposed to severe catastrophe events including Southeast Asia, Australia, New Zealand and Japan,” she added.

Clients are also rethinking how they structure their programs.

“Generally, we may see changes in program structures as clients seek to manage their exposures and earning volatility more effectively,” she noted, adding that “Overall, clients are relatively comfortable with retentions and terms and conditions.”

The risk landscape itself is shifting faster than in the past, driven by what Ooi described as “the external effects of geopolitics, climate change, social inflation and technological disruption”.

For reinsurers, she said, “We see both the threat and opportunity in equal measure. Our key focus remains the ability to assess and quantify the evolving risk landscape and provide consistent and sustainable capacity to our partners at risk adequate prices.”

On appetite for Asian risks, Ooi is clear that the region remains central to Hannover Re’s strategy.

“The Asia Pacific region remains a strategic focus for Hannover Re,” she added.

She acknowledged that softening in the primary market is “certainly a consideration particularly for proportional treaties where reinsurers are directly exposed to the performance of the underlying portfolio.

“However, this is not a new phenomenon and our approach has remained consistent. We are disciplined in our underwriting, with a clear focus on portfolio quality and sustainable returns.”

Evolving landscape

That discipline does not preclude flexibility.

“At the same time, we are committed to supporting our clients through early constructive engagement and tailored solutions as underlying risks and market conditions evolve,” she said.

“Our objective is to build long-term partnerships while ensuring that the business we write continues to meet our underwriting and profitability expectations.”

Ooi noted that Asia’s challenges are a mirror of global ones.

“I think the challenges in Asia mirror the challenges we see globally in terms of more supply compared to demand in some lines of businesses which can put price under further pressure,” she said.

“However, the risk landscape is also evolving faster and for reinsurers and insurers, it is imperative that we continue to play the important role of providing financial resilience to the region. Especially as underlying exposures become more complex.”

“Our focus remains on underwriting discipline, portfolio quality and to deepen and broaden our relationships with clients by moving beyond traditional capacity and being a genuine risk transfer partner, helping them address their evolving protection needs.” Sharon Ooi, Hannover Re

She cautioned against reading recent loss experience as a guide to future severity.

“Recent frequency catastrophe losses such as the Nepal flash floods or the earthquakes in Anak Krakatau in Indonesia and Kumamoto in Japan or the Bangkok floods do not necessarily reflect the expected severity of future events particularly given increasing asset concentrations and underlying growth of clients’ portfolios,” she said.

Reinsurance, she added, “is ultimately a long-term business that requires stable capital, a strong balance sheet coupled with the ability to turn technical expertise into solutions that support clients’ needs”.

Looking ahead, Ooi said Hannover Re’s priorities are “centred on strengthening client partnerships and continuing to deploy our broad capabilities across the region”.

“Our focus remains on underwriting discipline, portfolio quality and to deepen and broaden our relationships with clients by moving beyond traditional capacity and being a genuine risk transfer partner, helping them address their evolving protection needs,” she said.

The ambition, she concluded, “will always be to grow with our clients, strengthen financial resilience across the region and remain a long-term trusted partner throughout the market cycle.”

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