Malaysian Reinsurance Berhad (Malaysian Re) has released the ninth edition of its annual research publication, ASEAN Insurance Pulse 2025. This edition delves into the premium retention capacity and capabilities of ASEAN insurance markets for large, complex risks, offering strategies to enhance the region’s ability to underwrite and retain more risk.
The report, based on interviews with senior executives from insurance and reinsurance companies across ASEAN, reveals that despite rising demand for risk protection driven by factors such as increasing incomes and climate change, the region’s insurance markets face significant challenges. Ahmad Noor Azhari Abdul Manaf, President and CEO of Malaysian Re, noted that “penetration rates remain relatively low, even in the most mature re/insurance markets,” with limited capacity and retention ratios, especially for large and capital-intensive risks.
Key findings indicate that ASEAN’s ability to manage these risks is hampered by correlated risks, limited surplus capital, and uneven technical capabilities. The report also highlights the uneven access to advanced catastrophe modelling and actuarial skills across the region, compounded by trade barriers that limit competition and innovation.
To address these issues, the report suggests establishing regional insurance pools, adapting domestic solvency frameworks, and enhancing regional expertise, particularly in catastrophe modelling. The report emphasised the importance of collaboration among industry and public-sector stakeholders to build a resilient insurance ecosystem, stating that the insights from the 2025 edition aim to guide insurers, regulators, and policymakers in strengthening ASEAN’s insurance industry.
