Data, analytics and insights platform GlobalData expects the APAC reinsurance market to reach $68.4bn in 2029 in terms of reinsurance accepted premiums, growing at a compound annual growth rate of 4.8% from $54bn in 2024.
Drivers of this growth are stable pricing and increased demand for CAT coverage, according to GlobalData.
The platform also noted that a few mature and fast-growing insurance markets in APAC will drive the growth along with an increasing inclination of reinsurers towards underwriting CAT risks. Regulatory developments, such as the introduction of the new risk-based capital regimes in Hong Kong SAR and climate risk stress tests in Malaysia, are also enhancing the market’s resilience.
According to Swiss Re, the global cyber insurance market premiums is estimated to rise by 8% to $16.6bn in 2025. As data from the reinsurance company showed that APAC only made up 8% of premium share, it also noted that there was market growth potential.
GlobalData also highlighted the demand for agricultural and Nat CAT coverage in China, which is expected to rise as the primary insurance market develops.
The APAC reinsurance market is also witnessing a growing interest in insurance-linked securities (ILS), with Hong Kong SAR emerging as a central hub, GlobalData said. The platform also noted that the trend is expected to support market growth and stability, although the full potential of the ILS market depends on further advancements and increased participation from Asian investors.