The report highlights trends, challenges, and opportunities shaping the industry across the 14 markets we track in the Asia-Pacific region.
Premium growth has slowed due to competition and other challenges, making business quality a key differentiator for resilience. However, there are opportunities for growth, and the reinsurance market continues to be supportive as we head into the 2026 renewal. While growth in non-life premiums continues, it has moderated in many places, with infrastructure spending and digitalization driving gains in some areas.
The report identifies five key themes shaping the near-term trajectory of APAC's non-life insurance industry. We set out how insurers are rising to meet these challenges, and how Gallagher Re can support.
1. Macroeconomic challenges:
GDP growth slowed in across most APAC markets in 2024, with non-life premium growth easing to 6.0% reflecting broader headwinds. Despite global trade disruptions and rate cuts potentially impacting returns, the region remains resilient, offering robust growth and insurance demand. Agility and balancing growth with disciplined capital strategies are key.
2. Climate risk and catastrophes
Natural disasters continue to be significant for insurers in the region. Climate variability and urban expansion into high-risk zones is increasing exposure at risk, driving interest in parametric insurance and risk-based underwriting to mitigate risk and support growth.
3. Regulatory modernization
Most APAC markets have either implemented, or are preparing for, IFRS 17 and enhanced risk-based capital regimes, reshaping solvency strategies. Rising foreign investment drives growth opportunities, urging insurers to adapt with future-ready talent and systems.
4. Digitalization and new markets
Online distribution, embedded insurance, and AI-powered underwriting are transforming the industry in APAC. Growth areas for the non-life industry include health insurance, electric vehicles, renewables, and cyber insurance, though challenges like rising medical inflation persist.
5. Reinsurance market shift
Capacity is returning, easing financial pressure in some markets. Capital strength and appetites rebounding offers opportunities for innovation and growth, but selectivity remains key, rewarding quality data, disciplined underwriting, and strategic alignment.
As APAC economies are adjusting to a new reality, insurers must adapt to a more competitive landscape. Quality, resilience, and strong risk management will define success. Gallagher Re is committed to helping clients navigate these challenges with tailored solutions that combine global expertise and local insight.
This intelligence has been drawn from the insights of Gallagher Re client advocates and practitioners covering 14 mature and emerging markets across APAC, as well as curated publicly available data sources.
Explore the full report to learn more about APAC's insurance trends and how Gallagher Re can help clients turn challenges into opportunities.