A competitive reinsurance market resulted in improved pricing for most insurers at April 1 renewals, driven by enhanced reinsurer results and relatively benign natural catastrophe loss activity across the region, the latest Aon’s report in its Reinsurance Market Dynamics series emphasized.

The report provides a comprehensive analysis of the marketplace at the April 1, 2025, reinsurance renewal – a key period for the Asia Pacific region, particularly Japan, South Korea and India.

According to Aon, a leading global professional services firm, the above-mentioned buyer-friendly conditions are expected to continue through the mid-year reinsurance renewals, supported by robust levels of capacity and reinsurer appetite. Global reinsurer capital reached a record high of USD 715 billion in 2024, driven by strong retained earnings and an expanding catastrophe bond market – where outstanding catastrophe bond limit increased to nearly USD 50 billion as of Q1 2025, the report says.

The April 1 renewals saw a continuation of the favorable market conditions at the January 1 renewals; reinsurers deployed additional capacity resulting in significant pricing reductions for insurers – particularly in Japan and South Korea – where risk-adjusted property catastrophe rates achieved double-digit reductions. Previously challenged areas, such as per-risk covers, also enjoyed more favorable pricing, as insurers leveraged property catastrophe business and reinsurer growth ambitions to drive more holistic support.

“At April 1 our clients continued to benefit from favorable reinsurance market and pricing conditions, supported by Aon’s extensive advocacy, analytical and transactional expertise. We expect to see opportunities for insurers to explore frequency protections and top-up covers as we approach the mid-year renewals, especially for those insurers that concentrate on the key characteristics of high performance”, commented George Attard, CEO APAC for Reinsurance Solutions at Aon.

April 1 also represents an important renewal date for facultative reinsurance business in Asia Pacific – particularly for Japan, South Korea and India. While conditions vary greatly by geography, robust levels of capacity have resulted in facultative reinsurance becoming an even more effective and attractive tool for Asia Pacific’s growing insurers, creating a buyers’ market, with double-digit reductions observed in competitive segments such as property and financial lines, Aon added in its press release.

Aon’s full Reinsurance Market Dynamics April 2025 report can be found here.