Gallagher Re’s latest analysis of the Asia-Pacific insurance sector highlights a shift in focus toward quality and resilience as premium growth slows amid rising competition and other challenges.
The firm’s third annual APAC Market Watch report notes that while non-life premium growth continued across 14 tracked markets in 2024, the pace has moderated in several countries. Some markets benefited from infrastructure investment and digitalization, while others faced constraints from tariff regimes, higher loss ratios, and price competition.
Gallagher Re’s 2024 Asia Pacific Market Watch report also highlighted significant growth in cyber, electric vehicle (EV), and health insurance segments. The APAC cyber insurance sector expanded at an annual rate of 50%, now representing 7% of the global cyber insurance market.
According to Gallagher Re, regulatory harmonization is advancing throughout the region, with all but two markets now operating under a risk-based capital regime and IFRS 17 accounting standards widely adopted.
The ongoing liberalization of markets and the removal of foreign ownership barriers are opening new opportunities for insurers. The report identifies five themes shaping the non-life insurance sector, including macroeconomic trends, regulatory change, and climate risk.
GDP growth across APAC slowed in 2024, with mature economies averaging 1.4% and emerging markets at 5.1%. Southeast Asia outperformed, with Vietnam and the Philippines expanding by 7.1% and 5.7%, respectively. Non-life premium growth outpaced GDP in several emerging markets, such as Vietnam (15.8%), India (12.8%), and Malaysia (7.7%)
Growth was slower in Singapore, South Korea, and Thailand. Gallagher Re points out that non-life insurance penetration remains higher in mature markets, but economic headwinds and shifting trade policies could affect the sector’s outlook, particularly in trade-dependent economies like China and South Korea.
Natural catastrophes remain a significant factor for insurers in the region. In 2025, events such as the Myanmar-Thailand earthquake and Tropical Cyclone Alfred in Australia underscored the need for robust risk management. Gallagher Re observes that climate variability and urban expansion into high-risk areas are increasing exposure.
There is renewed interest in parametric insurance, catastrophe bonds, and risk-based underwriting. Regulatory bodies are also developing policies and frameworks to address climate risk and promote resilience.
Looking ahead to 2026, Gallagher Re concludes that quality will be the key differentiator for insurers in the region. Firms with resilient portfolios, disciplined execution, and strong risk management will be best positioned to succeed in an increasingly complex and competitive environment.
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