Aon Reports Favorable Reinsurance Market Conditions at April 2025 Renewals

Aon released its *Reinsurance Market Dynamics* report, highlighting improved pricing and expanded capacity in the global reinsurance market during the April 1 renewal period—particularly for Asia Pacific countries like Japan, South Korea, and India. These favorable “buyer-friendly” conditions are expected to continue into the mid-year renewals, bolstered by strong reinsurer performance and minimal natural catastrophe losses.

Reinsurer capital reached a record $715 billion in 2024, driven by strong earnings and a growing catastrophe bond market, which now holds nearly $50 billion in outstanding limit. Insurers in Japan and South Korea saw double-digit reductions in risk-adjusted property catastrophe rates, and even previously challenged areas like per-risk covers experienced better pricing.

Aon anticipates continued insurer demand for more than $7.5 billion in additional U.S. property catastrophe coverage at mid-year, with opportunities emerging for frequency protections and top-up covers.

Facultative reinsurance also saw significant growth, especially in Asia Pacific, with reinsurers offering more capacity and competitive terms, further benefiting insurers looking to expand and manage volatility.

The report also outlined traits of high-performing insurers, such as strong risk appetite, speed to market, use of data and analytics, innovative underwriting, top-tier talent, effective distribution, and flexible capital strategies.

As the final major renewal period of 2025 approaches, reinsurers are expected to compete actively to meet growth targets, making it a strategic opportunity for insurers to secure advantageous coverage.