Behind the softer pricing lies a market propped up by excess capacity, with the report warning that a retreat by just a handful of dominant reinsurers could trigger a rapid reversal.
Swiss Re expects Asia to outpace global insurance growth in 2026, though the regional outlook is splitting sharply between AI beneficiaries, energy-exposed markets and reform-led growth stories.
Researchers say insurers, reinsurers and governments must balance competing trade-offs around risk sharing, pricing and mitigation to sustain disaster coverage.
AI’s payback period may be longer than expected, as costs, timelines and benefits remain difficult to separate and quantify, industry experts said at ITC Asia.
Insurers across China, Taiwan and South Korea are bolstering capital buffers and refining investment strategies as low rates and volatility strain traditional earnings models.
Low insurance take-up should cap insured losses, but the event may add scrutiny to the net retention strategy cedents have pursued in response to rising reinsurance costs.
