Supported by improving results and relatively benign natural catastrophe loss activity across the region, renewals were broadly favourable for Asia Pacific insurers at 1 April, says Aon, a leading global professional services firm providing a broad range of risk, retirement and health solutions.
In the report titled “Reinsurance Market Dynamics – April 2025 Renewal”, Aon points out that 1 April is a key renewal period for Asia, with around 60% of the region’s treaty business renewing, and as much as 95% in Japan.
Supported by improving results and relatively benign natural catastrophe loss activity across the region, renewals were broadly favourable for Asia Pacific insurers. Reinsurers continue to see Asia Pacific as a diversifying growth opportunity and were willing to deploy additional capacity at 1 April.
While the Los Angeles wildfires in January formed the backdrop to negotiations, they had little to no impact on capacity, pricing and terms for APAC renewals. Facultative capacity has also increased, including Aon’s recently launched Marlin APAC, a new exclusive facility for Asia Pacific clients currently with up to $15m of dedicated capacity available per risk and growing.
Across the region, insurers enjoyed healthy reductions, particularly in Japan and South Korea, where some outcomes exceeded pre-renewal expectations. Risk-adjusted rate reductions in the mid-to-high single digits were typical, with double-digit reductions available in some territories.
Insurers were also able to leverage the market’s appetite for property catastrophe business to achieve more favorable terms across the board, including for previously challenging areas like US casualty and property per-risk covers.
With stable demand and growing capacity, buyer-friendly conditions are expected to continue through 2025, which sees further renewals in Greater China as well as major renewals for Australia and New Zealand.