Taiwan drives higher reinsurance prices after 2024 earthquake losses

Despite the loss activity, capacity remained strong.

Taiwan was one of the few Asia-Pacific markets to record reinsurance rate increases at the January 2025 renewal, diverging from regional softening trends, AM Best’s “Reinsurers’ Disciplined Capital Deployment and Underwriting Remain Key Foundations” report said.

The shift followed the April 2024 Magnitude 7.2 earthquake in eastern Taiwan, which generated significant insured losses, mainly from semiconductor and high-tech property damage. 

Much of the exposure was ceded facultatively to international reinsurers, with some losses hitting CAT XOL treaty layers.

Despite the loss activity, capacity remained strong, and most treaty placements were oversubscribed, allowing reinsurers to secure higher rates. 

The outlook for the January 2026 renewal remains firm after another earthquake, a Magnitude 6.4 event in January 2025, further raised reinsurer concerns over profitability in Taiwan’s tech-heavy risk profile.

Reinsurance demand has also risen in the engineering sector, driven by government-backed offshore wind power projects. 

According to the Non-Life Insurance Association of the Republic of China, premium income in this segment grew 40% in 2023 and has continued to expand through 2024 and 2025. 

Most offshore wind construction risks have been ceded facultatively to international reinsurers, with limited local retention.