How can Asia-Pacific reinsurers tackle rising disaster losses?

They still posted steady growth over the past five years.

Asia-Pacific reinsurers collected $58.6 billion in premiums in 2024, down from $60.2 billion a year earlier, as some companies changed the way they report their earnings.

China remained the biggest market in the region, accounting for almost half of total premiums, a concentration that GlobalData Plc expects to continue.

Despite the decline, the region’s reinsurers posted steady growth over the past five years, reflecting the expanding demand for coverage across Asia.

The five biggest firms captured more than 70% of the market. China Reinsurance (Group) Corp. led the pack, though its share dipped slightly.

Other major players, including PICC Reinsurance Co. Ltd in China, Korean Reinsurance Co., India’s General Insurance Corp., and Japan’s Sompo Holdings, Inc. had mixed results, with some posting gains and others experiencing small declines.

Japan’s MS&AD Insurance Group Holdings, Inc. posted the strongest annual premium growth from 2020 to 2024 at 22.6%, followed by PICC Reinsurance Co. Ltd. at 16%.

Natural disasters continued to challenge the sector. A 7.7-magnitude earthquake struck Myanmar, flooding hit parts of China, India, and Southeast Asian nations, and Typhoon Wutip affected Beijing.

Hong Kong also recorded a fatal apartment fire, exposing gaps in protection and highlighting the risks of concentrated exposures.

Analysts said much of the region remains underinsured. Last year, only about 11.5% of economic losses from natural catastrophes in the Asia-Pacific region were covered, equivalent to about $10b of the $87b total loss, according to Arthur J. Gallagher (UK) Ltd.

Reinsurers are increasingly turning to innovative solutions to manage risk, including catastrophe bonds, parametric insurance, and artificial intelligence (AI)-powered modelling that uses satellite imagery and environmental data. Automation is also helping streamline underwriting, claims, and policy management, letting specialists focus on more complex decisions.

The market’s challenges underscore structural limitations in the region, where rapid economic growth and rising disaster risks outpace insurance penetration. Analysts suggest expanding coverage, improving data and modelling capabilities, and promoting public-private partnerships to narrow the protection gap.

Questions to ponder:

• What structural or regulatory challenges limit Asia-Pacific’s share of global reinsurance?
• How do reinsurers plan to maintain profitability amid slower premium growth?