Asia and India reinsurance prices fall on excess capacity: Marsh

Japan saw double-digit price drops in property catastrophe and property per risk lines.

Reinsurance prices in Asia and India fell during the April 1 renewal season as an increase in capital created excess capacity in the market. 

According to a report from Guy Carpenter, approximately $1b of Asia reinsurance premiums and all reinsurance treaties in India were up for renewal during this period. 

This trend follows a broader global softening of the reinsurance market.

Japan, the largest territory in Asia for April 1 renewals, saw double-digit price drops in property catastrophe and property per risk lines because supply outweighed demand. 

Other key markets, including the Philippines, Singapore, Indonesia, and Korea, also experienced double-digit price reductions on catastrophe business that had not suffered recent losses. 

Most renewals in Japan were completed a week ahead of schedule, with contract terms and structures remaining stable across the region. 

India’s renewal season was particularly competitive due to a lack of major insurance losses and strong local capacity. 

Prices for loss-free excess of loss business in India decreased by more than 20%, whilst rates for liability and cyber insurance also remained competitive. 

The region continues to attract international players, with 18 foreign reinsurers now registered with the International Financial Services Centres Authority (IFSC).

Speciality lines, such as marine and aviation, were influenced by the ongoing conflict in the Middle East. 

Despite the potential for significant losses in these areas, reinsurers prioritised maintaining coverage for their clients. 

Notably, reinsurers did not insist on adding new conflict-related exclusions to contract terms during this renewal cycle.

On a global scale, insured catastrophe losses for the first quarter of 2026 are projected to be roughly $13b. 

This figure is more than 50% lower than the five-year average when adjusted for inflation. 

Reinsurers are currently responsible for a smaller portion of these global losses because they have moved to higher attachment points and there have been fewer major catastrophe events.