The insurance industry across the Asia-Pacific region is expected to maintain steady growth throughout 2026, according to international rating agency Fitch Ratings. In its latest review, the agency indicated that approximately 92 per cent of rated insurers in the region continue to hold a ‘stable outlook’. This demonstrates the sector’s strong capital positions, effective risk management capabilities, and disciplined business strategies, collectively reflecting its resilience and operational strength.
In the life insurance sector, companies are placing increased emphasis on improving product quality, profitability, and portfolio restructuring as they prepare for 2025 and 2026. Insurers are implementing long-term measures to enhance their resilience against fluctuating interest rates, unexpected equity market volatility, and ongoing regulatory changes. Simultaneously, the non-life insurance sector is expected to sustain robust earnings in 2026, supported by improvements in underwriting discipline and operational efficiency. The favourable conditions in the international reinsurance market are anticipated to further strengthen profitability for non-life insurers, according to Fitch’s analysis.
Insurance companies across the region have also begun comprehensive preparations for upcoming solvency regulations, several of which will take effect in 2026. These preparations include building additional capital, strengthening asset-liability management, and implementing risk mitigation strategies. Despite regulatory reforms, slower economic growth, and lower investment yields, Fitch expects average operating margins across the sector to remain broadly stable.
While the overall regional outlook remains positive, Fitch revised the life insurance outlook for China and Taiwan from ‘stable’ to ‘deteriorating’ in mid-2025. In China, strict commission structures have slowed premium growth, and increased sensitivity to equity market fluctuations poses risks to the stability of future earnings. In Taiwan, the new capital requirements set to take effect in 2026, combined with market volatility and high hedging costs, have exerted significant pressure on life insurers.
Despite these challenges, Fitch restored the ratings of most Taiwanese life insurers to ‘stable’ in November 2025, reflecting notable improvement compared with previous scrutiny related to sharp Taiwan dollar appreciation and foreign exchange risks.
Jeffrey Liu, head of Fitch Ratings’ Asia-Pacific Insurance team, noted that although strict capital rules, market uncertainty, and climate-related risks continue to challenge the sector, strong income streams and solid capital buffers support stability throughout the region. He added that, despite subdued growth in China and Taiwan’s life insurance markets and increased currency sensitivities, the stability observed across the rest of the region indicates the overall strength and resilience of the Asia-Pacific insurance industry.