Commercial insurance buyers in Asia experienced further rate declines at year-end 2025, as pricing fell across most major lines in the region, according to Marsh Risk’s latest Global Insurance Market Index. The broker reported that average commercial insurance rates in Asia decreased 5% in the fourth quarter of 2025 (Q4 2025), continuing a multi-quarter period of lower pricing in several classes.
The regional trend was consistent with broader global conditions. Marsh Risk said global commercial insurance rates declined 4% on average in the fourth quarter, marking the sixth consecutive quarter of overall rate decreases following several years of sustained rate increases that began in 2014. Outside the US, all major regions recorded year-over-year composite rate reductions in the fourth quarter of 2025. The Pacific and India, Middle East, and Africa (IMEA) markets saw composite decreases of 12% and 10%, respectively. Latin America and the Caribbean, the UK, and Canada each reported 7% declines, while Europe’s composite rate fell 6% and Asia’s dropped 5%. In contrast, the US composite rate was flat after a 1% decline in the third quarter (Q3 2025).
John Donnelly, president, Global Placement, Marsh Risk, said capacity conditions have been relatively consistent in recent quarters. “The global insurance market has been characterised by ample capacity across most lines and regions over the last six quarters. In the absence of unforeseen circumstances, we expect this trend to continue throughout 2026. This year, clients have the opportunity to secure reduced premium rates and negotiate broader terms which may include improving the resilience of their programs to cater for the increasing complexity of risks,” Donnelly said.
In Asia, property insurance rates declined 5% in the fourth quarter, with capacity widely available and competition active among insurers. Some insureds were able to negotiate changes to program structures, including adjustments to sub-limits and deductibles and modifications to restrictive wording. Carriers also increased the use of long-term agreements that incorporated low-claims bonuses and multi-year discounts, resulting in multi-year arrangements where loss experience permitted. Capacity for property risks was deployed across a range of industry segments rather than being limited to specific sectors. However, underwriters maintained a cautious stance on accounts with deteriorating loss histories, indicating that lower pricing did not extend uniformly to all risks.
Casualty pricing in Asia moved slightly lower, with overall rates down 1% after a 3% decline in the previous quarter. Clients generally had access to capacity from both global and regional carriers. General liability rates were either stable or down in most Asian markets, with Japan an exception where rates increased. Auto liability pricing rose in Japan, the Philippines, and Vietnam, while remaining flat or lower in other territories. Excess and umbrella business saw mostly flat pricing or moderate adjustments, although programs with US exposure faced rate increases of 5% to 10%. By comparison, Marsh Risk’s global data showed casualty rates up 4% in the quarter, an increase from a 3% rise in the third quarter. The broker attributed much of the global casualty rate movement to a 9% increase in the US, where insurers continue to focus on the frequency and severity of large liability claims.
Financial and professional lines in Asia recorded some of the most pronounced decreases among commercial classes. Marsh Risk said rates for these lines declined 10% in the fourth quarter, following an 8% reduction in the prior quarter. Directors and officers (D&O) liability pricing fell across most Asian markets, while Vietnam showed early indications of stabilisation. Market and capital flows influenced D&O trends. A shift of Chinese initial public offerings toward regional stock exchanges, particularly in Hong Kong, reduced some premium pools and contributed to additional downward pressure on D&O rates. For financial institutions and professional liability, rates declined between 5% and 7.5%, reflecting competitive dynamics among participating insurers.
Cyber insurance in Asia followed a similar trajectory, with average rates down 10% in the quarter compared with a 5% decrease three months earlier. Demand remained underpinned by an increasing number of cyber incidents and evolving regulatory expectations around data protection and operational resilience. Insurers expanded policy offerings to address exposures such as cyber-related property damage, social engineering fraud, and supply chain attacks.
At the same time, carriers updated wording to address risks associated with the use of generative artificial intelligence and intensified their review of third-party cyber exposures, particularly in complex supply chains. Globally, Marsh Risk said cyber insurance rates fell 7% in the fourth quarter, with decreases reported in every major region. Financial and professional lines worldwide declined 4%, following a 5% global decrease in the third quarter.
The commercial pricing environment in Asia is developing against a regional backdrop of moderating premium growth and shifting risk factors. Outlooks from rating agencies and consultants indicate that headline premium expansion in Asia-Pacific is likely to slow in 2026 compared with earlier periods, while capital and solvency positions remain adequate in many markets. Fitch Ratings has maintained a neutral outlook on the region’s insurance sector, noting that recent operating performance and capital buffers support this stance in most jurisdictions. The agency expects life insurers in Asia-Pacific to focus on profitability and product mix, while non-life carriers concentrate on underwriting standards and may benefit from softer reinsurance pricing in 2026.
Deloitte’s 2026 Insurance Outlook projects that non-life premiums in Asia-Pacific will grow by about 2.5% in 2026, compared with 2.9% in 2024 and an estimated 2.1% in 2025. Life premiums in the region are expected to expand by 1.1% in 2026, following an estimated 0.4% increase in 2025 and a 1.0% contraction in 2024. Over the longer term, Deloitte forecasts average annual life premium growth of 5.3% in Asia-Pacific through 2053, driven by rising incomes, demographic changes, and increasing demand for retirement and health-related solutions in markets including China, India, and Southeast Asia.
Specialty lines in Asia-Pacific are developing from a relatively low base and remain an area of activity for insurers and reinsurers. S&P Global Ratings identifies cyber insurance in Asia as one of the fastest-growing insurance segments globally. Primary cyber insurers in Asia-Pacific have recorded compound annual gross written premium growth of around 36% over the past five years, second to Latin America’s growth rate over the same period. The agency also notes growing use of longevity risk transfer and capital management structures in parts of Asia where insurance and pension coverage is relatively limited. This supports activity in the life reinsurance market as cedents seek to manage long-term guarantees and exposures linked to aging populations.
In an October 2025 Asia-Pacific reinsurance sector update, S&P Global Ratings said reinsurers in the region are likely to experience modest and uneven gross written premium growth in 2026. Competitive pricing, available capacity, some softening in reinsurance rates, and slower economic growth are expected to constrain top-line expansion, even as cedents and reinsurers adjust portfolios in response to geopolitical tensions, catastrophe experience, and technology-related risks. For insurers, reinsurers, and intermediaries across Asia, the combination of declining or stable commercial pricing, evolving specialty demand, and a changing risk environment is expected to influence renewal strategies, capital deployment, and product design throughout 2026.
