IP rider cancellations surge 72% as nearly 182,000 policies dropped

The insurance sector has registered a significant uptick in the number of intellectual property riders being cancelled or reduced, marking a 72 per cent rise compared to previous periods. Industry figures indicate that 181,800 riders were dropped or downgraded throughout 2025, reflecting a notable shift in policyholder behaviour.

The substantial increase suggests that businesses and individuals are reassessing their coverage needs for intellectual property protection. The reasons behind the surge remain under examination, though market analysts point to factors such as economic conditions, changing business priorities and evolving risk assessments as potential drivers.

Insurers and brokers across the region have noted the trend as part of broader policy review cycles, with some attributing cancellations to cost-cutting measures and shifting corporate strategies. The data underscores the dynamic nature of the insurance market, particularly in specialised coverage segments.

The spike in IP rider discontinuations could have implications for businesses relying on intellectual property protection, particularly in technology and creative industries prevalent across South and Southeast Asia. Industry observers suggest that stakeholders should carefully evaluate whether reduced coverage aligns with their actual risk exposure and business requirements.