APAC reinsurers brace for tough 1.1 renewal
Reinsurers operating in the Asia-Pacific region are preparing for a challenging 1.1 renewal cycle, according to William Ho, head of APAC for MS Amlin. He said abundant existing and new capacity, combined with relatively low insured natural catastrophe losses in 2026, will intensify pressure on reinsurance pricing, margins and contract terms.
Ho explained that the market has already experienced two years of steep softening, eroding reinsurers’ margins toward, or even below, technical adequacy. As cedants and brokers push for further savings, reinsurers will face a difficult decision: continue underwriting at reduced profitability or withdraw from certain treaties. MS Amlin plans to limit growth in the renewal, focusing on key client relationships and scaling back exposure to deals that do not meet its expectations.
Maintaining underwriting discipline will be a central challenge. While natural catastrophe losses have remained benign this year, recent events—including September flooding in Bangkok, an August landslide in Nepal and a July earthquake in Kumamoto, Japan—serve as reminders of the region’s growing climate-related risk. Ho noted that if losses stay low, pricing pressure will persist, but the frequency of events will still influence negotiations.
Thailand stands out as an outlier, having already absorbed the impact of two major catastrophes in 2025—the Bangkok earthquake and the Hat Yai floods. The recent Bangkok flooding, though smaller than the 2011 disaster, could affect property catastrophe pricing in the country. Ho expects terms and conditions that were tightened in recent years to hold firm, with purchasers likely focusing more on cost than coverage adjustments.
Why it matters
The renewal will shape pricing, capacity and risk appetite for insurers and brokers across APAC, directly affecting premium costs for policyholders.
FAQ
What is driving the tough renewal outlook for APAC reinsurers?
A surplus of existing and new reinsurance capacity and benign insured natural catastrophe losses in 2026 are creating intense competition and pressure on rates and margins.
How is MS Amlin planning to respond to the 1.1 renewal?
MS Amlin expects muted growth, prioritising key client relationships and reducing exposure to treaties that do not meet its expectations.
What recent events have highlighted climate risk in the region?
Flooding in Bangkok (September), a landslide in Nepal (August) and an earthquake in Kumamoto, Japan (July) were cited as timely reminders of growing climate-related risk.
Source: Insurance Asia News. See the original source for full details.
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