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Asia Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the Asian insurance market.

Q1 2024

Asia composite rate declines

Insurance rates in the first quarter of 2024 in Asia declined 2% after being flat for the three prior quarters.

Asia first quarter 2024

Asia composite insurance rate change 

Asia property

Property insurance rates decrease

Property insurance rates declined 1%.  

  • Property insurance rates declined in a number of countries and industries, with the exception of those in catastrophe (CAT) exposed geographies and in select industries, such as technology, with significant business interruption (BI) exposure.
  • Highly CAT-exposed geographies, including Japan, Taiwan, and the Philippines, and industries with significant business interruption exposure remained exceptions to the downward rate trend.
    • Clients in these segments typically retained more risk through increased deductibles, assuming capacity within their insurance program, or adopting alternative risk transfer methods such as captives, parametric, or structured solutions.
  • Although inflation generally has not been as pressing in Asia as elsewhere, insurers continued to seek validation of values and a deeper understanding of clients’ BI calculations.

Asia casualty

Casualty rates decline, insurer capacity abundant

Casualty insurance rates declined 1%.

  • The liability insurance market has remained stable, with some rate decreases, due primarily to ample capacity, especially when exposure is limited to a specific country or region.
  • Underwriters continue to scrutinize North American exposures and critical products.
  • Insurers remain focused on cyber coverage for business interruption and property damage. 

Asia financial and professional lines

Financial and professional rates decline, led by D&O

Financial and professional lines rates declined 6%.

  • Many clients experienced rate decreases in public and private directors and officers (D&O) liability, commercial PI, financial institutions, and flat rates in lines such as crime.
  • Increased competition contributed to reduced primary rates and improved terms and conditions.
  • Appetite for public company D&O with US exposure increased, with price and deductible improvements, although the UK and Bermuda markets continued to be relied on for capacity on large programs and challenging risks.
  • Appetite for digital assets business remained challenging, with insurers exercising caution, particularly with crypto-related assets.

Cyber rates decline, insurers scrutinize cybersecurity controls

Cyber insurance rates decreased 3%.

  • Underwriters continued to look for and favor companies with strong risk controls.
  • Increased capacity in the market led to discussions on expanding coverage options.
  • Insurers remained vigilant about ransomware issues and supply chain attacks.

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 24/187