Re-insurance is the practice of insurers transferring portions of their risk portfolios to other insurers or insurance groups in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. For example, the 9/11 terrorist attacks in the US triggered $35.6 billion in insurance costs, which would have put many insurance companies on the verge of bankruptcy if they had to cough up the money alone. Fortunately, the international re-insurance market swallowed 70 percent of the costs, playing a decisive role in maintaining the stability of the insurance market.
In the Asian market, the re-insurance business has been outpacing GDP growth in recent years, to create $30 billion in business opportunities.
The ACR Capital Holdings, established by John Tan, is a leader in the Asian insurance market.
Tan started his 30-year career in insurance when he acquired membership in the Chartered Insurance Institute (UK) at the age of 20. He cut his teeth by working at HSBC Insurance Brokers, Union Re and Swiss Re. He’s an expert in insurance underwriting, re-insurance, claims and insurance brokerage.
He has long work experience in Hong Kong, Brunei, Malaysia and Switzerland, which gave him a deep understanding of different business backgrounds in the Eurasian region and in development trends of the re-insurance industry in Asia. In the 1990s, Asia’s re-insurance business was mostly domestic operations.
After the 1997 financial crisis in Asia, Tan felt the need for insurance capacity building in Asia.
In November 2006, John Tan turned his entrepreneurial dreams into reality - ACR Capital Holdings and its wholly-owned subsidiary, Asia Capital Reinsurance Group (Asia Capital Re), were officially established, with headquarters in Singapore and branch and representative offices in seven Pan-Asian areas. His business focused on offering risk management solutions to clients.
As the company founder and leader, John Tan’s business philosophy focuses on "home" and "heart", which he believes is the core of any kind of culture or society. Therefore, from day one, Tan hoped ACR staff would feel that going to work is leaving home for another home. The concept of "home" and "heart” is also closely related to ACR’s work. Asia is home where ACR employees live, work and create brilliance. As an Asian citizen and a member of this big family, each person has the responsibility to build it into a nice place.