Sompo’s Asia-Pacific growth strategy, with Ken Reilly

Sompo’s Ken Reilly says local empowerment, underwriting discipline and protection gap opportunities define the re/insurance group’s strategy across Asia Pacific.

The transformation of Japan’s largest insurers into global operators has gone relatively unremarked in the western reinsurance world but is one of the defining stories of recent decades.

Few embody this new wave internationalisation more than Ken Reilly, CEO of insurance for Sompo in Asia Pacific, who now also oversees the company’s Japanese commercial division.

Reilly sees Sompo’s internationalisation as a striking change.

“Flip back 10 years ago and Sompo was largely a domestic organisation. Today it is truly global, with over $30bn in P&C premiums,” he said.

Speaking on the Voice of Insurance podcast, hosted by Mark Geoghegan in association with AdvantageGo, Reilly described his 30-year international career.

From New York to London, Bermuda, Hong Kong, Tokyo and now Singapore, his experience has shaped his approach to running such a diverse portfolio.

“I just crossed the 30-year line in the industry, which is a bit of a shocker. Having had the opportunity to work in the core markets early in my career really shaped what laid ahead,” Reilly said.

Asia Pacific scale

Reilly outlined Sompo’s footprint across 11 markets, with regional headquarters in Singapore and long-established licences across the wider region.

“In some of the markets, we’ve been there for 50 years. Sompo is not a foreign name. It’s an established brand that represents resilience and stability,” he explained.

The business writes around $1bn in premium across its majority-owned operations, he noted, with more coming from its joint ventures in India, Vietnam and the Philippines.

Together, Sompo employs more than 4,000 people across the region.

“Our consumer markets are focused where we can achieve scale, in areas like motor, health and home insurance,” he said.

“On the commercial side, we use a hub-and-spoke model centred in Singapore, with local underwriters empowered in Hong Kong, Malaysia, Thailand and elsewhere,” Reilly continued.

This balance is critical to resilience, Reilly stressed.

“We are very conscious of our geographic and product mix. The key is to be agile, to keep bureaucracy out, and to be there when opportunities arise,” he added.

Global ambitions, local empowerment

Reilly credited Sompo’s internationalisation to both organic growth and its acquisition of rival carrier Endurance.

But he emphasised that Asia Pacific expansion across so many markets requires sensitivity to each country’s distinct culture and regulatory environment.

“[We are] regionally aligned but locally empowered,” he explained. “It’s not a one-size-fits-all approach. We must respect the nuances of each country while bringing in global best practices.”

That alignment allows knowledge-sharing across markets. “What we learn the hard way in one country, that knowledge should be transferred to another,” Reilly said.

Specialist not generalist

Asked whether Sompo aims to be a generalist in new markets, Reilly had a clear response.

“We don’t want to be everything for everyone. Our approach has pivoted to a specialist approach over the last five to 10 years, and that’s starting to pay dividends,” he said.

Sompo draws on its domestic Japanese experience, spanning 130 years, but adapts its focus market by market.

“We know what we’re good at, we know what we’re not good at, and we adjust accordingly,” he said.

Opportunities and risks

Singapore and Hong Kong were highlighted as core growth markets, with specialist underwriters hired to build commercial strength.

The insurer continues to expand in emerging economies such as India and Vietnam, where under-insurance and protection gaps remain large.

“There’s still plenty of growth opportunities even in mature markets,” he said. “But underwriting discipline always remains centre stage. We’re not just focused on growth, but on profitable growth.”

He acknowledged broader risks, from the rising trend of import tariffs and supply chain disruptions to extreme weather caused by climate change and online cyber threats.

“It’s about being analytical and staying ahead of emerging risks,” he said.

Lessons for the West

Reflecting on what Western insurers might learn, he pointed to Asia-Pacific’s openness.

“There’s no hesitation to learn from other markets to avoid making the same mistakes. That willingness to adapt and the sense of loyalty in customer relationships are real strengths,” he said.

Customer loyalty in Asia is another differentiator for the commercial insurer, he suggested.

“Once clients understand the commitment and the value we provide, there isn’t a tendency to jump ship every 12 months. The stickiness in certain segments is strong,” Reilly said.

“It’s exciting to be part of this growth story,” he said. “People want to be part of Sompo’s journey. Our global ambitions are supported by a parent that continues to empower us to build a truly international organisation.”