SIRC 2026: Facultative demand rises as soft market meets a riskier Asia Pacific

November 4 2026 by

A pronounced softening cycle is driving increased demand for facultative reinsurance in a riskier Asia-Pacific market, according Rob Drysdale, senior partner at cedent facultative specialist broker Consilium. 

“On the supply side, reinsurance capacity is plentiful giving cedents more options, and on the demand side, premium reductions are increasing motivation for cedents to transfer more volatility from their portfolios,” he said.   

The rate movements, according to Singapore-based Drysdale, have been striking.  

“Rate reductions have been particularly large this year in the facultative market and it hasn’t been uncommon to see rate reductions above 40% for some lines of business in certain territories,” Drysdale added. “We even had one client joke recently that ‘last year’s brokerage is this year’s premium’. 

“A soft market and abundant capacity give clients greater choice, but demand reinsurer discipline.” 

That pricing environment is fuelling a specific kind of appetite.  

“There is strong demand from cedents to remove volatility and attrition losses, and we have seen considerable interest in spot fac purchases,” Drysdale added.  

Evolving risk landscape

Yet the soft market tells only half the story, as even with abundant capacity, the underlying risk landscape is growing more complex and that is sharpening the case for buying protection. 

“The backdrop is also riskier,” Drysdale said. “New and emerging exposures such as cyber and AI, the effects of climate change, and rising geopolitical tensions, all weigh on the picture and increase the attractiveness of buying reinsurance. From a regional perspective, Asia is also more exposed to these risks than others.” 

Fac is particularly well suited to this environment, he added, because it allows clients to target protection with precision.  

“Examples include purchases for specific locations on global programs which are more exposed to nat cat or involved in a higher risk occupancy than the rest of the schedule,” he said.  

“This is where facultative reinsurance is an effective tool as it enables clients to make very bespoke purchases.” Rob Drysdale, Consilium

Drysdale was careful to stress that the softening is far from universal.  

“Not every line of business and territory is softening universally,” he said.  

“Rates in some countries are holding up better than others, and there are even pockets where the market has hardened, such as marine war and political violence in the Middle East, where rates are obviously much higher than they were before the conflict in the Middle East.” 

That divergence, he added, is precisely why cedents continue to value fac.  

“This shows how quickly the picture can change, and why cedents value protection in the areas where they may feel more vulnerable,” he said. 

Regulation is another force shaping how facultative business is placed with India a case in point.  

“India is a good example as recent regulations there have put significant restrictions on offshore reinsurance, and with the emergence of Gift City, has added local capacity and contributed to considerable pricing pressure,” Drysdale said. 

Regional ambitions

With its Singapore office less than a year old, Consilium sees opportunity across the region, particularly given the wave of infrastructure investment underway.  

“For us, growth opportunities are everywhere, especially with the investment in infrastructure projects across the region,” Drysdale said. 

The firm intends to build on its early momentum.  

“We’re building on a strong start and will keep investing in both talent and capability in the region,” he said.  

“Alongside our core lines of business, we’re seeing more opportunities than we initially expected in casualty, marine and financial lines, and we expect to continue broadening our offering as client demand develops.” 

But expansion will not come at the expense of discipline.  

“We’ll expand in a measured way, adding capability where we can deliver real value for clients rather than chasing volume,” he said. 

“Our aim is simple: to be the independent wholesale and facultative reinsurance broker of choice for clients in Asia Pacific.” 

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