Low rates are here to stay but can be managed, the Singapore International Reinsurance Conference has heard.

“All carriers writing industrial and commercial lines… in Asia are writing below their technical rates,” Allianz Global Corporate & Specialty (AGCS) CEO Chris Fischer Hirs said.

“However, through diversification of portfolio, product and geography, you can afford that.

“This is the new normal. For us, we need to focus on our core competencies, and that is providing insurance solutions.

“I don’t believe in cycles any more. I just believe in offering solutions and valuable differentiated services.”

Mr Fischer Hirs says AGCS’ focus is on underwriting sustainably for the long term.

“We need to be competitive, but won’t be the cheapest,” he told the conference.