SIRC 2026: Pricing softening faster than the risk environment is improving, Ageas Re says

November 4 2026 by and

Pricing across APAC is softening faster than the risk environment is improving, and that gap is the defining challenge of the 2027 renewal season, according to Christoph Spichtig, head of international and specialty at Ageas Re. 

“We continue to see low insurance penetration in many Asian markets, increasing weather volatility, growing secondary peril activity, inflationary pressure on claims, geopolitical uncertainties, and evolving cyber exposure,” Spichtig said.

“At the same time, pricing is softening faster than the risk environment is improving. Encouragingly, several regulatory developments are strengthening and enhancing the financial strength, resilience, and risk-bearing capacity of APAC insurers in certain territories.” 

But despite the relatively benign catastrophe activity in the region, the underlying risks have not diminished, he added. 

“Over the next 12 months, our focus is on disciplined growth and continued diversification. Geographically, Asia remains a key strategic market for us, where we see attractive opportunities to deepen existing partnerships and provide long-term reinsurance capacity,” he said. 

“From a business perspective, while property will remain a core component of our portfolio with selective growth where returns remain attractive, we are focused on expanding our specialty, engineering, agriculture, and credit and bond portfolios globally.   

“We also see increasing opportunities in partnership-driven and proportional business as clients look for capital-efficient solutions.”  

In August, as part of a global restructuring, Zurich-based APAC lead underwriter Spichtig was asked to lead the international and specialty business as part of “a new, more client-focused organisation” under CEO Joachim Racz. 

“Capacity in APAC remains abundant and competition for quality business is strong. Against this backdrop, particularly for loss-free portfolios, we will continue to assess opportunities against our own technical underwriting and return requirements,” Spichtig said.  

“Following a relatively benign catastrophe year in the region, aside from events in Nepal, Tibet, and Thailand, cedents may understandably seek improved renewal terms.   

“Our key challenge for the upcoming renewal season will be finding solutions that balance those expectations with our technical return requirements on mutually agreeable structures and terms. Our focus remains on supporting clients with a long-term partnership perspective.” 

Ageas Re hired Hong Kong-based Matthew Tong as its Asia representative in October 2025. 

“APAC remains a strategic growth market for us and our appetite remains strong. We continue to see attractive opportunities across the region, particularly with clients focused on long-term partnerships and sustainable portfolio development,” Spichtig said.  

“The softening seen in some primary markets is something we monitor closely, especially within proportional treaties where performance is directly linked to underlying portfolio quality and pricing adequacy.  

“While it is natural for cedents to seek improved terms in a more favourable market, reinsurance should ultimately be about providing the right protection and supporting the long-term resilience of the business.” Christoph Spichtig, Ageas Re

“Our approach remains unchanged. We will continue to support clients through the cycle, but our focus remains on profitable, sustainable growth underpinned by technical profitability.” 

And for Spichtig, as competition continues to increase and market conditions soften, the key challenge is ensuring that discussions and actions remain focused on the overall effectiveness of the reinsurance program, not simply on price. 

“While it is natural for cedents to seek improved terms in a more favourable market, reinsurance should ultimately be about providing the right protection and supporting the long-term resilience of the business,” he added.  

“The current environment offers a good opportunity for cedents to reassess their program holistically. Is the structure aligned with the company’s risk appetite and capital objectives? Are protection levels adequate, and is the program delivering the most efficient use of capital?  

“These questions are just as important as pricing when evaluating a reinsurance strategy. Data quality and transparency also remain critical. The better we understand the underlying portfolio and exposures, the more effectively we can deploy capacity and provide meaningful support.   

“Ultimately, market conditions will change, but strong partnerships, open communication, and a shared focus on long-term sustainability are what create lasting value across the cycle.” 

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