(EnergyAsia, November 15 2011, Tuesday) — The Asia Pacific market accounted for an unprecedented two-thirds of the insured catastrophe losses worldwide in the first three quarters of 2011, according to a new report released by Guy Carpenter & Company LLC, aleading global risk and reinsurance specialist and a member of Marsh & McLennan Companies.

The report placed the region’s share of losses to more than USS50 billion, contributing to “challenging times” for insurers and their reinsurer partners operating in the region.

In the Asia Pacific Catastrophe Report 2011, Guy Carpenter highlighted catastrophe loss ratios in Asia Pacific which it describes as a key factor driving the region’s catastrophe reinsurance market in the loss affected territories.

“Demand for catastrophe reinsurance in the Asia Pacific region has expanded rapidly over recent years, and industry indicators point to further growth. The catastrophe losses during 2010 and 2011 are likely to stimulate this trend further by re-emphasising the value of reinsurance.

“Underlying drivers of growth include macro-economic factors, such as the rapid economic growth of China and India, as well as an increasing level of sophistication in insurance organisations in the region,” it said.

James Nash, the company’s Asia Pacific CEO, said:

“An unprecedented series of events, of which the ongoing Thai floods are yet another chapter, reminds us of the need for increased understanding of catastrophe risk in the Asia Pacific region. Due to economic constraints, there remains much underinsurance of catastrophe risk in many countries. Yet as the region’s economies grow, so does the demand for catastrophe insurance and reinsurance support.

“Catastrophe reinsurance is designed to protect insurers from severe losses when they occur. Despite the significant loss activity in the region, capital in the global reinsurance market remains strong, emphasising the effectiveness of catastrophe reinsurance as a tool for hedging risk.”

Guy Carpenter & Company LLC is the world’s leading risk and reinsurance specialist and a member of NYSE-listed Marsh & McLennan Companies. With over 50 offices worldwide, Guy Carpenter creates and executes reinsurance solutions and delivers capital market solutions for clients across the globe.