Chinese commercial insurers are maintaining a disciplined and selective approach to underwriting, with a clear focus on profitability amid evolving market conditions. According to Aon’s Q3 2025 report, the broader market continues to operate under generally moderate to soft pricing, offering favourable conditions for well-performing accounts.
An exception to this trend is the Directors and Officers (D&O) liability segment, which has come under upward pricing pressure due to rising claims and evolving regulatory scrutiny. While capacity remains abundant across most lines of business, automobile coverage is experiencing some constraints, reflecting heightened risk exposure and claims volatility.
In renewal practices, insurers are largely maintaining existing limits and deductibles. However, risks that demonstrate strong performance and low loss histories may benefit from increased limits or reduced deductibles, providing an incentive for companies to maintain robust risk management practices.
Beyond traditional underwriting, Chinese insurers are increasingly embracing digital and scenario-based innovations to offer more customised solutions to clients. Scenario modelling allows insurers to anticipate emerging risks and tailor coverage more precisely, aligning policy terms with specific corporate exposures. In parallel, there is a concerted effort to build an open and collaborative ecosystem, with partnerships extending to upstream and downstream industries, technology providers, and service organisations. This approach seeks to integrate risk management more broadly across business operations, enhancing both efficiency and resilience.
The following table summarises key features of the Chinese commercial insurance market:
| Topic | Details |
|---|---|
| Market Status | Moderate to soft; exceptions in D&O liability |
| Underwriting | Disciplined and selective |
| Key Exception | D&O liability under upward pressure |
| Capacity | Generally abundant; constrained in automobile lines |
| Renewal Trends | Expiring limits/deductibles maintained; top risks may see adjustments |
| Digital Innovation | Scenario-based, customised solutions |
| Collaboration | Open ecosystem with industries, technology, and service providers |
Overall, the Chinese commercial insurance market demonstrates a careful balance between risk selection, profitability, and innovation. Insurers are navigating evolving exposures while leveraging technology and collaboration to deliver tailored solutions, reinforcing the sector’s resilience and long-term growth potential.
Source: InsuranceAsia, Aon Q3 2025 Report