Underwriting in China’s commercial insurance sector remains disciplined and selective, as insurers prioritise profitability. According to Aon’s Q3 2025 Global Insurance Market Insights Report, the market is generally operating under moderate to soft pricing conditions, benefiting preferred and well-performing risk accounts.
However, upward pressure persists in the Directors and Officers (D&O) liability segment, marking a key exception to the otherwise buyer-friendly environment.
Market capacity remains abundant across most business lines, giving clients leverage during renewals. The main capacity constraint is observed in the automobile sector.
Underwriting remains disciplined, though there is more flexibility in casualty and liability lines due to intense competition. Most placements are renewing with expiring limits and deductibles, while clients achieving premium savings are taking advantage of the soft market to increase their coverage limits. Reductions in deductibles are also available for certain well-performing risks.
Chinese insurers are increasingly focusing on expanding digital solutions. Jia Dai, CEO of Commercial Risk Solutions at Aon-COFCO, stated that insurers are advocating for more scenario-based innovations to develop customised solutions across industries.
Beyond traditional risk transfer, insurers are creating an open and shared ecosystem, cooperating with upstream and downstream industries, technology companies, and service providers to enhance the overall insurance ecosystem.
Summary of China’s Commercial Insurance Market
| Topic | Details |
|---|---|
| Market Status | Moderate to soft, except specific segments |
| Underwriting | Disciplined and selective |
| Key Exception | D&O liability experiencing upward pressure |
| Capacity | Abundant across most lines; limited in automobile |
| Renewal Trends | Expiring limits/deductibles; top risks may increase or decrease |
| Digital Innovation | Scenario-based customised solutions |
| Collaboration | Open ecosystem with industry, technology, and service providers |
KhaborwalaAJ
Source- InsuranceAsia
