Asia Insurance Market Rates

Property insurance rates decline, interest in alternative solutions rises

Property insurance rates declined 5% as competition remained high.

• Increased competition among insurers, driven by international markets, typically led to positive results for clients on sub-limits and deductibles.
• Insurers generally prioritized client retention by offering long-term agreements (LTAs), which often included discounts and low-claims bonuses.
• Underwriters showed caution regarding high-hazard companies and those with deteriorating loss histories.

Casualty rates decline, capacity stable

Casualty insurance rates declined 2%.

• There was stable capacity and competitive rates.
• Clients without losses typically experienced greater rate decreases.
• Underwriters continued to focus on significant US exposures, loss histories, and emerging risks, with notable regional variations.
• In Korea, intense price competition among local and international insurers persisted.

Financial and professional lines rates decline

Financial and professional lines rates declined 7%.

• Increased capital market activity, including a rise in IPOs, created new opportunities for insurers, particularly in directors and officers (D&O) liability insurance.
  • D&O liability rates saw average reductions ranging from 5% to 15% across the region.
• Financial institutions (FI) and professional liability (PI) rates saw decreases of 5% to 10%.

Cyber rates decline, first-time buyers increase

Cyber insurance rates decreased 7%.

• Many clients secured increased coverage, with an uptick in first-time buyers.
• Cyber insurance capacity increased, with new offerings like personal cyber insurance enhancing client options.
• Third-party cyber risk remains a key focus for underwriters and companies as they assess their cyber risk and digital supply chains.

Our rates reflect the segment mix of Marsh’s client portfolio.