China's insurance market sees rate decreases in Q4 2024

Mainly to retain business and secure program participation.

China's insurance market remained largely favourable in the fourth quarter of 2024, with insurers offering rate decreases to retain business and secure programme participation, according to Aon's Global Insurance Market Insights report. 

Competition has intensified for risks with profitable loss ratios and sought-after occupancy classes, whilst underwriters remain focused on sustainable pricing amidst declining bank interest rates.  

New energy businesses, particularly photovoltaic and lithium-battery risks, have become more challenging as insurers reassess underwriting strategies following recent large losses.

Capacity remains abundant across most lines, including Property, Casualty, and Directors & Officers insurance. 

However, cyber underwriting remains strict for new clients in emerging industries, and commercial automobile insurance—especially for trucks and taxis—continues to be difficult to place, according to Jia Dai, CEO of Commercial Risk Solutions at Aon-COFCO.  

Pricing pressure varies across product lines and locations, but overall, competition is driving rates downward for risks with favourable loss histories. 

Whilst capacity is sufficient for most risks, insurers are more cautious in covering natural catastrophe-exposed properties.

Underwriting remains prudent, with favourable terms available in competitive segments.  

Most placements are renewing with expiring limits and deductibles, though risks with large losses face upward pressure on deductibles.

Expiring terms and conditions are generally available, but insurers have shown a reduced appetite for commercial risks such as trucking and taxis. 

In casualty and liability insurance, market conditions remain positive, but international insurers continue to impose PFAS exclusions.  

The cyber insurance market remains stable, with some capacity increases at renewals. Underwriting remains strict, particularly for new risks in emerging industries, whilst insurers introduce localised solutions, including coverage extensions and incident response services.  

In Directors & Officers insurance, strong competition and abundant capacity are driving pricing reductions, with potential decreases in retention levels. 

Property insurance remains favourable, with healthy underwriting results allowing for modest rate decreases in targeted risks.