China reinsurance market stable as capacity grows: AM Best

The motor segment has entered a low-growth phase, though profitability has improved. 

China’s reinsurance market remains stable, supported by steady demand and increased capacity across most business lines, AM Best’s “Reinsurers’ Disciplined Capital Deployment and Underwriting Remain Key Foundations” report said. 

Reinsurers are broadly deploying capacity, leading to softer rates, whilst terms and conditions have largely remained unchanged, reflecting a balanced market between cedents and reinsurers.

Catastrophe activity in 2024 was mild, with Typhoon Yagi causing an estimated $500m in insured losses after striking Hainan Province, the Philippines, and Vietnam. 

The impact on Chinese insurers varied by exposure, but loss-free treaties — especially earthquake-only layers — saw notable risk-adjusted rate reductions during the 2025 renewals.

The motor segment has entered a low-growth phase, though profitability has improved. 

Rising electric vehicle (EV) sales are creating new reinsurance opportunities, but reinsurers remain cautious given limited loss data and uncertain margins.

Growth in non-motor lines, including agriculture, health, and liability, is strengthening. Segments aligned with government policy are seeing strong reinsurance demand, though profits remain concentrated amongst larger insurers with stronger underwriting and risk management capabilities.