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Global and Asia Insurance Market Index

Asia Insurance Rates: Q1 2025

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Global commercial insurance rates declined by 3% in the first quarter of 2025, the third consecutive decrease in the composite rate following seven years of increases.

The index is a proprietary measure of global commercial insurance rate changes at renewal, providing insights on the world's major insurance markets.

Asia commercial insurance rates declined 3%, the same as in the prior quarter.

  • Thailand, Korea and Malaysia experienced the largest composite rates decreases, at -16%, -14% and -10% respectively, compared to -6%, -9% and -7% in the prior quarter. 
  • Japan recorded a rate increase, at 4%, compared to 3% in the prior quarter.
  • Composite rate in Taiwan, Republic of China (R.O.C.) was flat, compared to 11% in the prior quarter. 

Access the full insights for the region in our Asia report.

Property insurance rates declined 3% in the quarter, the same as in the prior quarter.

  • Insurers exercised strict underwriting discipline — particularly for industries perceived as high risk, distressed businesses, and those impacted by losses.
  • International and wholesale markets have contributed to creating a competitive environment, leading to generally improved outcomes for clients across local, regional, and global programs.

Casualty insurance rates in Asia declined 2% in the quarter, compared to 1% in the prior quarter.

  • Organisations without losses and benefitting from competitive London capacity experienced decreases of 5% to 10%. 
  • Insurers adopted a diversified approach to underwriting risks associated with per- and polyfluoroalkyl substances (PFAS), with some applying broad exclusions while others opted for selective or partial exclusions.
  • Korea, Malaysia, and Thailand experienced the largest decrease in casualty rates, at -17%, -9%, and -7% respectively, compared to  -12%, -1% and -6% in the prior quarter.
  • Japan experienced a rate increase, at 7%, compared to 6% in the prior quarter.

Financial and professional lines rates declined 8% in the quarter, compared to 9% in the prior quarter.

  • Limited capital market activity restricted new business opportunities for insurers and increased competition for renewals. 
  • Directors and officers (D&O) liability rates influenced overall changes, with average reductions ranging from 10% to 20% across the region. 
  • Malaysia, Thailand and Korea experienced the largest decrease in rates, at -18%, -13% and -12% respectively, compared to -7%, -8% and -11% in the prior quarter.  

Cyber insurance rates decreased 8% in the quarter, compared to 11% in the prior quarter.

  • Growing competition among insurers fuelled by new entries into the market and increased capacity among existing players drove rate declines.
  • Insurers were concerned about the severity and sophistication of ransomware attacks, particularly around data encryption and business interruption.
  • Insurers and reinsurers actively reviewed war and infrastructure exclusions.
  • China experienced rate decreases of -13%, compared to -3% in the prior quarter. 
  • Cyber rate decreases in Singapore moderated, at -3%, compared with -18% in the prior quarter.

The moderating insurance rates and more favourable terms for businesses that implement strong risk management strategies present a great opportunity to address protection gaps in Asia. 

To ensure your insurance strategy keeps pace with your business risks, Marsh Asia recommends a four-step approach:

  1. Assess the value of your assets via professional valuations. 
  2. Review your Business Interruption (BI) declared values.
  3. Balance cost vs. coverage with Risk Finance Optimisation (RFO).
  4. Unlock access to cost-efficient insurance capacity.

Asia composite insurance rate change