APAC reinsurance market enjoys boost, Aon report shows

Written by Michael Griffiths

01/04/2025

A “competitive” reinsurance market has resulted in improved pricing for most insurers in the Asia Pacific (APAC) region at the 1 April renewals, a new report by Aon has indicated.

This has been driven by enhanced reinsurer results and relatively benign natural catastrophe loss activity across the region.

Aon suggested the “buyer-friendly” conditions are also to continue through the mid-year reinsurance renewals, supported by robust levels of capacity and reinsurer appetite.

According to Aon’s latest report, the 1 April renewals saw a continuation of the favourable market conditions at the 1 January renewals, as reinsurers deployed additional capacity resulting in significant pricing reductions for insurers – particularly in Japan and South Korea – where risk-adjusted property catastrophe rates achieved double-digit reductions.

Previously challenged areas, such as per-risk covers, also enjoyed more favourable pricing, as insurers leveraged property catastrophe business and reinsurer growth ambitions to drive more holistic support.

CEO APAC for reinsurance solutions at Aon, George Attard, said: “We expect to see opportunities for insurers to explore frequency protections and top-up covers as we approach the mid-year renewals, especially for those insurers that concentrate on the key characteristics of high performance.”

According to Aon’s report, global reinsurer capital reached a record high of $715bn in 2024, driven by strong retained earnings and an expanding catastrophe bond market – where outstanding catastrophe bond limit increased to nearly $50bn as of Q1 2025.

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