Unlocking growth through structured solutions: Swiss Re

In times of economic and environmental uncertainty, structured solutions are stepping up as a key support for insurers across Asia-Pacific, according to Swiss Re. 

“Reinsurance today isn’t just about risk transfer capacity,” Alison Drill, head of structured solutions APAC at Swiss Re, told SIRC Today. 

“It’s about designing strategic solutions that support growth, manage capital efficiently, and stabilise earnings.”

The Asia-Pacific market, Drill noted, stands out for its complexity. “Asia Pacific is a very interesting market—very diverse. It’s not a single market but a combination of very different countries with varying regulatory frameworks,” she said. 

This diversity, she believes, requires reinsurance offerings that are adaptable to local demands and precise. “In markets experiencing rapid expansion, like India and Indonesia, we find structured reinsurance to be a highly effective way to provide the capital they need to keep pace with growth,” she explained. 

India’s insurance sector, for instance, often sees growth rates exceeding 20 percent annually. “It’s very different to some other markets in Europe,” Drill said.

“There’s significant interest in parametric solutions for disaster preparedness.”

Focus on results

Managing financial volatility is a mounting priority, particularly as some markets mature. “Clients are increasingly focused on delivering consistent returns for their shareholders and need solutions to smooth out earnings volatility,” Drill said. Swiss Re addresses this by offering reinsurance structures that absorb the impact of large, unexpected losses. 

“Our goal is to provide stability, often using multi-year and multiline features to make reinsurance as efficient as possible,” she added.

Another challenge is unlocking trapped capital, often tied up in non-performing entities. “We help clients strategically exit these situations, transferring the tail risk to our balance sheet, which enables them to repatriate their capital,” Drill explained. This approach is crucial for insurers operating in fragmented markets with complex regulatory landscapes.

She discussed the innovative solutions being used in the region, with parametric solutions one of the most prominent. “We’re seeing interest in variable quota shares, which allow clients to adjust their risk retention based on changing market conditions,” she said. 

“There’s significant interest in parametric solutions for disaster preparedness, particularly from the public sector,” Drill said, noting that these solutions enable quick payouts and are increasingly used to protect vulnerable communities.

“They are especially effective in regions where traditional insurance isn’t widely accessible, offering financial protection to lower-income groups,” she said.

With an eye on growth and resilience, Drill said Swiss Re’s focus is to remain a key player in this space. 

“Swiss Re has an important role to play in Asia-Pacific markets by tailoring reinsurance to help clients navigate their unique challenges,” she concluded. 

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