Why APAC insurance growth is losing momentum this year

Insurers are being urged to balance growth with capital discipline.

Premium growth in Asia-Pacific’s insurance markets has slowed in 2025 amidst rising competition and economic headwinds, according to Gallagher Re’s latest APAC Market Watch report. 

The study highlights that in this environment, the quality of underwriting and portfolio resilience are becoming key differentiators.

The report found that non-life premium growth continued across the region in 2024, though at a slower pace in many markets. 

Vietnam and the Philippines led with GDP growth of 7.1% and 5.7% respectively, whilst non-life premium growth in Vietnam (15.8%), India (12.8%) and Malaysia (7.7%) outpaced overall economic expansion.

Mature markets such as Singapore (3%), South Korea (2.2%) and Thailand (0.8%) saw weaker growth.

Gallagher Re said economic uncertainty, slowing global trade, and falling interest rates are weighing on investment returns.

Insurers are being urged to balance growth with capital discipline to remain resilient.

Natural catastrophes remain a key challenge, with major 2025 events including the Myanmar-Thailand earthquake and Cyclone Alfred in Australia. 

The report noted growing interest in parametric insurance and catastrophe bonds, alongside greater regulatory efforts to promote climate resilience.

Regulatory modernisation is also shaping the region. Most APAC markets have adopted or are implementing IFRS 17 and enhanced risk-based capital regimes. 

Liberalisation measures are opening new opportunities, whilst rising data protection and AI governance rules are expected to drive cyber insurance demand.

Digitalisation continues to accelerate, supported by regulators such as Malaysia, which has launched a digital insurer licensing regime.

Key growth areas include health insurance in India, Hong Kong and Vietnam; renewable and electric vehicle coverage in China, Singapore and Taiwan; and cyber insurance in Australia, Singapore and South Korea.

After several years of tight conditions, reinsurance capacity is improving, leading to rate reductions and more favourable treaty terms in 2025. 

Reinsurers, however, remain selective and continue to reward strong underwriting and quality data.

As the region moves toward 2026, Gallagher Re said insurers that maintain portfolio quality, risk discipline, and operational resilience will be best placed to navigate a more complex and competitive landscape.