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China’s proposed insurance law rewrite arrives at a sensitive moment for Asia Pacific commercial programs. Capacity is available, but acceptable paper, reinsurance costs and tolerance for thin balance sheets are under scrutiny. For executives placing or supplying regional risk, a domestic capital rule could matter well beyond licensing.
This week’s deep dive covers:
The market looks well capitalized until the marginal paper is isolated
Reinsurance credit is where domestic capital becomes placement cost
Capacity moves first through counterparty committees, not headline withdrawals
1. The market looks well capitalized until the marginal paper is isolated
At the end of Q4 2025, Chinese property and casualty insurers reported an average comprehensive solvency ratio of 243.5 percent and an average core solvency ratio of 212.7 percent, according to National Financial Regulatory Administration data. Reinsurers were similarly strong, at 244.6 percent comprehensive and 212.5 percent core. Both sit well above regulatory minimums of 100 percent comprehensive and 50 percent core. On aggregate figures alone, China does not look like a market facing a capital squeeze.
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