Full Capacity: Asia’s vulnerability demands urgent roadmap for resilience
October 11 2025 by Mithun Varkey
Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.
Leadership change. Indian state reinsurer GIC Re’s chairman and managing director Ramaswamy Narayanan has retired and it has named Rajesh Pawar as the interim leader. Pawar is currently a general manager of GIC Re.
Picking up losses. The Australian Reinsurance Pool Corporation (ARPC) suffered an operating deficit of US$587.5m during the 2024-25 financial year due to the “large scale” of ex-Tropical Cyclone Alfred. The ARPC, which wrote US$740m in GWP, said that it remains in a “strong financial position and is operating as the legislation intends”.
NatCat brief. A magnitude 7.4 earthquake struck the east coast of the island of Mindanao, Philippines, on Friday, with local authorities in the Philippines and Indonesia warning of dangerous tsunamis.
While more details on the impact of the event are awaited, the quake comes even as Cebu island is still reeling from the magnitude 6.9 earthquake on September 30 that left at least 74 people dead and displaced thousands. And InsuranceAsia News reported that the Cebu earthquake is likely to cost over US$35m in total losses.
Meanwhile, Vietnam, which was slowly picking up after Typhoon Bualoi that led to over US$625m in economic losses and US$13.5m in insurance payouts, has faced the brunt of yet another windstorm, Typhoon Matmo.
The impact from the heavy rains and flooding from Matmo is likely to be quite serious, including a dam collapse, and further risks of flooding as reservoirs continue to release water.
Wind in the sails. A quiet revolution is brewing off the coast of Japan. For a nation blessed with abundant coastline but scant natural resources, Japan has set an ambitious target of 10 gigawatts of offshore wind by 2030, and a staggering 30-45 gigawatts by 2040.
This presents a significant opportunity for (re)insurers as the market needs significant capacity to insure these projects.
As Hiroyuki Ishijima of Tokio Marine noted, “The Japanese offshore wind market is finally taking off and there is interest from lots of people around the world”.
However, the ambition is fraught with risks due to the deep seabed surrounding Japan, the threat of tsunamis, earthquakes and the frequency of typhoons in the region, which requires offshore wind power assets to be built with special technologies.
“The whole Japanese offshore wind market is basically three insurers who are willing to provide capacity,” Ishijima said. “What is important is to maximise the reinsurance support from the global market”.
Climate, catastrophe and caution
The past few weeks have been a stark reminder of Asia’s vulnerability to natural disasters. While North Asia braced for Super Typhoon Ragassa – dubbed the strongest windstorm of the year – its impact turned out to be less catastrophic than feared.
However, Southeast Asia, particularly the Philippines and Vietnam, has been in a tailspin of turmoil.
The Philippines has faced a relentless barrage: two earthquakes and two typhoons – Bualoi and Matmo – have wreaked havoc on communities. The aftermath? Over 314,000 people affected and 8,400 displaced.
Meanwhile, Vietnam bore much of the brunt of the two storms, suffering severe flooding that claimed at least eight lives and damaged over 4,800 homes. Thailand, too, is drowning under the weight of extreme flooding, with 22 fatalities and nearly 370,000 people displaced.
According to Aon, the economic toll could spiral into the hundreds of millions of dollars.
While Ragassa may have dominated headlines, the true devastation lies in the quiet aftermath of these lesser-known storms. The Philippines and Vietnam are grappling with mounting fatalities and economic losses – but the insurance industry isn’t exactly stepping up to the plate.
As the global reinsurance sector prepares to converge in Singapore for the International Reinsurance Conference, the grim reality of these losses will be a hot topic.
Industry sources say that despite a softening market, reinsurers are expected to take a more cautious stance on underwriting in high-risk zones, particularly those prone to seismic activity.
Expect tighter terms and higher premiums for primary insurers, which could further strain vulnerable regions.
The chilling truth is that as climate change escalates and mitigation efforts lag, the need for investment in adaptation and resilience has never been more urgent.
The intersection of climate and development pressures presents a clear mandate: there is a pressing need for a decisive roadmap to navigate this stormy future.
As my colleague, Marcus Alcock, noted in his opinion piece in the wake of Ragasa, Hong Kong’s impressive preparedness ahead of the event and the mitigation efforts are praiseworthy and perhaps offer a template.
And for the region, the time for action is now, before the next disaster strikes.
People moves
Aon has promoted Wee Teck Tea as head of commercial risk solutions in Singapore.
Ageas Re named Christoph Spichtig to lead its property underwriting for Asia Pacific.
MS Amlin has added three underwriters to its APAC team – Darren Toh and Yosuke Yasuda as senior underwriters, and Amirul PJ Ashraf as an underwriter,
Coalition has named Trent Nihill as its general manager in Australia.
Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region.
-
Full Capacity: Bridging the innovation gap
- October 4
This week's newsletter discusses typhoon Bualoi's impact, Lloyd's leadership, MS&AD's brand refreshing, Mapfre Re's expansion plans, and the growth of the renewable energy insurance market.
-
Full Capacity: Herding cats – taming the cyber chaos
- September 27
This week's newsletter discusses typhoon Ragasa's impact, DB Insurance's acquisition of Fortegra, Everest Re entering India's GIFT Ci, underwriters cautioning against proliferation of auto buying and smart follow facilities, and a reminder of the perils of cyber.
-
Full Capacity: Gen Z discontent boils over
- September 20
This week's newsletter discusses: • IAN's scoops in Australian broker leadership • Chinese insurers enter Hong Kong's convertible bond market • Australia eyes Flood Re • Gen Z dissent amplifies political violence concerns
-
Full Capacity: Insights from the IUMI conference in Singapore
- September 13
This week's newsletter discusses: • Indonesia's protests • P&C market growth from Swiss Re Institute's Sigma Report • APAC's W&I market • IUMI
-
Peak Re | From climate modelling to market opportunity: Forging a new clarity on Southeast Asia’s climate risk
Southeast Asia's protection gap: a crisis of clarity, not just capital
-
BHSI WICare+ | Accelerating Payments, Empowering Recovery
Launched in cooperation with Steadfast’s Singapore network, WICare+ fills the gaps found in traditional coverage and keeps businesses and their workforce secure by covering up to SG$350,000 in medical expenses per claim.
-
BHSI | Managing non-Asian exposure in long-tail lines
While US-exposed business can look attractive to Asian carriers, managing the volatility around the long-term results and the ability to model those losses are crucial, say BHSI’s Marc Breuil and Marcus Portbury.
-
Allianz General | Allianz General combines innovative protection solutions while powering social good to lead Malaysian market
The insurer proactively addresses emerging risks and evolving customer protection needs while giving back to the community.
