Why 9 in 10 APAC insurers hold stable outlooks

Non-life insurers are likely to benefit from favourable reinsurance conditions.

Fitch Ratings expects Asia-Pacific insurers to maintain generally stable performance in 2026, supported by strong capital buffers and disciplined business practices. 

Life insurers are focusing on quality growth and product profitability, whilst non-life companies are emphasising underwriting discipline and efficiency. 

Across the region, insurers are preparing for changing solvency rules through capital-raising and active asset-liability management.

Fitch expects operating margins to remain steady despite regulatory changes, slower growth, and lower investment yields. 

Non-life insurers are likely to benefit from favourable reinsurance conditions, whilst life insurers will continue focusing on product profitability and portfolio management in volatile markets. 

Capital levels are expected to remain sound, though market volatility is a key risk.

The agency maintained “deteriorating” outlooks for China life and Taiwan life, revised from stable in mid-2025. 

China’s life insurers face slower premium growth due to tighter commission rules and greater exposure to equity-market swings. 

Taiwan’s life insurers are under pressure from new capital standards set to take effect in 2026, as well as currency movements and hedging costs.

About 92% of Fitch-rated APAC insurers remain on a Stable Outlook, reflecting expectations that capital and earnings will stay within rating benchmarks. 

Fitch affirmed most Taiwanese life insurer ratings with Stable Outlooks in November 2025, removing previous negative watches linked to sharp Taiwan dollar appreciation and FX mismatches.

“Tighter capital rules, market volatility and extreme weather pose challenges, but robust earnings and capital buffers support stability. We retain 'deteriorating ‘deteriorating’ outlooks on China life and Taiwan life on slower growth, higher market/FX sensitivity and capital challenges,” Jeffrey Liew, Head of APAC Insurance at Fitch, said in a report.