Asia’s construction casualty insurance market to stay stable

Premium reductions are more likely in softer markets like Korea and China.

The construction casualty insurance market in Asia remains stable, though conditions still vary, Aon’s 2025 Global Construction Insurance and Surety Market Report stated.

Capacity is generally adequate, with reinsurers offering slight risk-adjusted rate reductions—typically between flat and –10%—for non-US exposures. 

However, risks with US exposure are seeing reduced limits and closer scrutiny. 

Premium reductions are more likely in softer markets like Korea and China, whilst Japan’s market continues to harden.

Major projects across Asia, including hospitals, factories, and data centers, are increasing in size and complexity, leading to longer completion times. 

Projects extending beyond 10 years or with defect liability periods over two years are harder to place. 

Renewable energy projects such as solar and wind are attracting greater interest from reinsurers, though battery energy storage systems (BESS), especially with US exposure or third-party manufacturing, remain difficult to insure.

Local handling of workers’ compensation and auto liability covers is common in markets like Vietnam and Thailand. 

In India, regulatory changes are attracting more international insurers, particularly for solar farm projects. 

There is growing adaptation to emerging risks like mass timber and modular construction, but appetite for coal, underground mining, and dams remains limited.

In Australia, public and products liability insurance continues to stabilize in 2025. Competitive pressures persist due to new entrants and insurer growth targets, but underwriting discipline remains. 

Residential construction appetite is declining, driven by rising property damage claims tied to prefabricated materials. 

Worker-to-worker injury claims average over $194,454 (AU$300,000), keeping deductibles under scrutiny. Bushfire-related risks and legal liability around “deemed manufacturer” status also remain areas of concern.