The Market Today

Legislation and Regulations

On 30 September 2025, the Treasury released a consultation paper titled Review of the Terrorism and Cyclone Insurance Act 2003. The consultation will consider whether the terrorism reinsurance pool and cyclone reinsurance pool should continue to exist. It will also assess the effectiveness of the cyclone reinsurance pool in improving insurance access and affordability for insureds, as well as the governance, administration, and resourcing of both pools. The deadline for comments on the consultation is 11 November 2025.

Market Participants

Following its election manifesto promise, the government of Tasmania has announced plans to establish a state-owned insurer, under the auspices of the local Motor Accidents Insurance Board, to offer cover to individuals and SME businesses in competition with the private market. The plan has been met with considerable criticism, including from political opponents and the Insurance Council of Australia, but the Tasmanian government has promised that the necessary legislation will be introduced by the end of 2025, with the new company commencing business during 2026.

Allianz Australia completed the acquisition of RAA Insurance in July 2025.

IAG acquired RACQ Insurance, part of The Royal Automobile Club of Queensland, in September 2025.

In May 2025, IAG revealed its agreement to purchase RAC Insurance, the insurance business of The Royal Automobile Club of Western Australia. In September, it was announced that the proposed deal was being subjected to more detailed scrutiny on competition grounds and that a final decision from the authorities was not expected until November.

Market Participants

In August 2025, Sompo Holdings announced that it had agreed to acquire Aspen Insurance Holdings Ltd, the Bermuda-based international (re)insurer. The deal is subject to regulatory approval and expected to complete during the first half of 2026.

Market Participants

On 22 April 2024 MNK Group, through its holding entity Specialty Management UK, completed the acquisition of 100% of the shares of Oceanica de Seguros SA.  In November 2024 the company changed its name to MNK Seguros Compania Aseguradora SA.

Market Participants

In September 2025, Allianz and Jio Financial Services announced the formation of a new reinsurer, Allianz Jio Reinsurance Ltd.

Generali announced a new joint-venture with the Central Bank of India in June 2025 and subsequently rebranded Future Generali Insurance as Generali Central Insurance Ltd.

Market Trends

On 29 August 2025, the Japanese Financial Services Agency (FSA) announced its intentions to establish the Asset Management and Insurance Supervision Bureau as a separate agency.  At present, the insurance business division of the FSA’s Supervision Bureau is responsible for supervising all four sectors of banking, securities, insurance and asset management. Under the new planned structure, the asset management and insurance business divisions would be transferred from the Supervision Bureau to the new bureau, centralising the supervision of asset management and insurance.

Market Participants

MS&AD Insurance Group Holdings Inc announced on 28 March 2025 its intention to merge the operations of Mitsui Sumitomo Insurance Co Ltd and Aioi Nissay Dowa Insurance Co Ltd. These companies have been the third and fourth largest in the Japanese non-life market in terms of premium income, and the resulting insurer may become the largest in the Japanese market. The target date for this merger is set for April 2027.

On 6 June 2025, Law No 54 was promulgated to amend the Insurance Business Act to ensure fair consumer treatment. Among other things, the amendments require insurance companies and agencies to establish an internal system to monitor the handling of insurance sales and they also require large non-life insurance agencies to appoint a person in charge of compliance with the law. Additionally, to promote fair competition, the amendments also prohibit insurers from offering goods and services that are not among its normal products and that are excessively beneficial to the clients. The law will come into effect within one year from the date of promulgation, with a provision for the government to review the enacted measures after five years to assess their effectiveness and make necessary adjustments.

Mitsui Sumitomo Insurance (MSI) acquired a majority stake in MGA Time Machine Underwriters in Japan, on 1 August 2025, with plans for a full acquisition later. This acquisition will allow MSI to integrate TMU's underwriting expertise with its own market presence in preparation for its 2027 merger with Aioi Nissay Dowa Insurance.

Market Trends

In October 2025, it was reported that Kosovo’s insurance market saw a 6.6% year-on-year increase in gross written premiums, reaching EUR 87.44mn in the first half of 2025. Paid claims rose sharply by 21% to EUR 42.35mn. Non-life insurance reportedly dominated with over 95% of the market, led by motor third party liability (MTPL), although the number of policies declined by 15.24%.

Legislation and Regulations

The government published a draft resolution in October 2025 that would introduce a supervisory levy of 0.5% on compulsory insurance premiums. This would include compulsory motor third party liability (OSAGO) premiums.

In October 2025, Order No 239 of 11 May 2016 on insurance brokers was replaced by Appendix 2 of Order No 650 of 9 October 2025. The new order sets out a range of operating requirements for brokers, including minimum qualifications for broker management as well as the professional duties of brokers. The order retains the requirement for brokers to maintain KGS 3mn either of professional indemnity insurance or an equivalent bank guarantee. Among other things, it also outlines the requirement for brokers to pay premiums to the insurer within three business days of receipt, although it does permit derogation from this if provided for in the contract.

The general requirement for private individuals to have CMTPL cover was due to be implemented from 1 January 2024 but this was delayed, at short notice, to 1 January 2025 and subsequently to 1 July 2025. There was then some conflicting reports about a further delay, but ultimately enforcement has now begun with effect from 1 September and the authorities have reported issuing a significant number of fines to those caught without cover.

Market Trends

On 29 August 2025, the Financial Services Commission (FSC) announced the Insurance (National Insurance Claims Database) Rules 2025, outlining measures for insurers in Mauritius regarding the management and processing of motor insurance claims within the newly launched National Insurance Claims Database.

Legislation and Regulations

According to the latest version of the national programme, the new Insurance Law should be passed by the fourth quarter of 2027.  Although this will advance harmonisation with the Solvency II and Insurance Distribution Directives, full compliance with the Insurance Directives will only be effective from the date of Serbia's accession to the EU.

Market Participants

It was reported in July 2025 that the UAE insurance market regulator revoked the operating licence of Al Khazna Insurance Company (AKIC), due to its failure to comply with primary licensing requirements during a preceding period of license suspension during which the regulator carried out a regulatory examination.