Roshan Perera, CEO of APAC at Gallagher Re, a global reinsurance broker and risk advisory firm, has outlined the key challenges and opportunities facing Asia-Pacific’s insurance and reinsurance markets in the company’s forthcoming APAC Market Watch report 2026, examining slower premium growth, emerging risks and the strategic opportunities created by changing reinsurance market conditions.
According to Perera, insurers across the region have maintained relatively strong profitability and capital positions despite economic uncertainty and geopolitical pressures. Non-life premium growth across the 14 major APAC markets covered by Gallagher Re reached 5% in 2025, although underwriting performance improved in many markets.
Perera identifies portfolio diversification, international expansion and emerging risks as priorities for insurers seeking sustainable growth. Accident and health, cyber, artificial intelligence (AI) and data centre infrastructure are among the areas creating new demand for insurance protection.
He also highlights the potential impact of geopolitical tensions on inflation and claims costs, alongside changing catastrophe exposures linked to climate variability. A potentially strong El Niño event could increase flood risks in Japan, affect agricultural conditions in India and contribute to a higher risk of late-season typhoons. Gallagher Re emphasises the importance of advanced analytics and climate modelling in assessing these exposures.
International expansion is another key trend identified by Perera, with Japanese and South Korean insurers pursuing overseas growth through acquisitions and existing operations. He also points to opportunities in emerging markets as insurers look to diversify beyond their domestic business.
AI presents further opportunities and challenges for the sector. Growing adoption of the technology and investment in semiconductors, data centres and energy infrastructure are creating demand for new insurance solutions. However, Perera highlights potential “silent-AI” exposures, where losses involving AI systems may fall within existing cyber or liability policies without having been specifically anticipated. Gallagher Re has established a Digital Risk Practice to help insurers and reinsurers assess these developing risks.
Reinsurance market conditions are also providing opportunities ahead of the 2027 renewal season. According to Gallagher Re, strong reinsurer balance sheets, abundant capacity and increased competition are creating favourable conditions for buyers. Beyond lower rates, insurers may be able to restructure programmes, adjust retentions and improve capital efficiency.
Despite ongoing uncertainty, Perera notes that underlying insurance performance has improved across much of APAC, with Japan and Taiwan recovering strongly from challenging periods. Specialty insurance, cyber, renewable energy and AI infrastructure are among the areas offering further growth potential.
Gallagher Re works with clients on capital optimisation, reinsurance programme design and expansion into new markets and business lines, combining global expertise with local market knowledge.
Perera’s analysis will feature in Gallagher Re’s APAC Market Watch report 2026, scheduled for publication later this month, which will examine market developments across 14 individual APAC markets.
