‘Buyer-Friendly’ Market Drives Opportunities at April Reinsurance Renewals: Aon Report

Aon plc (NYSE: AON), a leading global professional services firm, today shared the latest report in its Reinsurance Market Dynamics series, which 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.

The report reveals that 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. These buyer-friendly conditions are expected to continue through the mid-year reinsurance renewals, supported by robust levels of capacity and reinsurer appetite.

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.

According to Aon’s report, global reinsurer capital reached a record high of $715 billion in 2024, driven by strong retained earnings and an expanding catastrophe bond market – where outstanding catastrophe bond limit increased to nearly $50 billion as of Q1 2025.

George Attard, CEO APAC for Reinsurance Solutions at Aon, said: “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.”

As insurers consider how to sustain profitable growth through the market cycle, a recent Aon article has identified the following seven key traits of outperforming insurance companies.

- Risk appetite – clear on risk tolerance, well-defined risk appetite and corresponding portfolio strategies.

- Speed and agility – quick to enter and expand in new risk categories, securing first-mover advantages with lasting financial benefits.

- Data and analytics – utilize advanced data and analytics with third party sources and technology investment.

- Underwriting – employ innovative underwriting techniques that reduce acquisition costs through automation and participation in broker facilities.

- Talent – unite top underwriting, claims and actuarial talent with a common goal; broaden expertise from within / beyond the industry.

- Distribution – ensure effective distribution channels, guiding underwriters to opportunities, helping brokers and clients through challenging renewals and setting clear expectations early.

- Capital – implement analytics-driven strategies that flex between available sources of capital in response to market conditions.

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. 

Attard added: “Across the board, facultative capacity has increased and reinsurers are competing more aggressively, creating greater opportunities for insurers to use facultative reinsurance to support growth plans and manage volatility.

With pent-up supply still outstripping demand, the mid-year renewals will represent the last major renewal opportunity for reinsurers to meet 2025 growth targets and earn premium to offset losses in the first quarter.  

For further detail on April 1 reinsurance renewal trends, please see Aon’s Reinsurance Market Dynamics April 2025 report: https://aon.io/rmd-april2025

For information about Aon’s Reinsurance Solutions: https://www.aon.com/en/capabilities/reinsurance 

About Aon

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