Commercial insurance rates Asia declined by 5% in the fourth quarter, highlighting continued soft market conditions across most major lines. The latest regional data show stable but competitive pricing, even as demand for cyber protection continues to grow.
According to Marsh’s Asia Insurance Market Rates report for the fourth quarter of 2025, overall commercial insurance rates Asia remained under pressure. The 5% decline matched the previous quarter’s drop, signaling that insurers are still competing aggressively for business.
Commercial insurance rates Asia show mixed country trends
Although commercial insurance rates Asia fell overall, not every market moved in the same direction. Vietnam and Japan were the only countries to record rate increases. Vietnam saw a sharp 15% rise, while Japan posted a modest 1% gain.
This marks a significant turnaround for Vietnam, which recorded an 11% decline in the prior quarter. Japan, meanwhile, had seen a 6% increase previously.
In contrast, South Korea and Taiwan experienced the steepest declines. Rates in Korea dropped 17%, whilst Taiwan recorded a 16% fall. Although still significant, these decreases were less severe than the previous quarter’s 25% and 14% declines respectively.
Casualty and liability lines remain soft
Casualty insurance rates across Asia eased by 1% during the quarter, an improvement from the 3% drop seen previously. Japan was again the only market to record an increase, with casualty rates rising 7%, unchanged from the prior quarter.
South Korea posted the sharpest decline in casualty rates, falling 17%, though this was slightly less severe than the 21% drop in the previous quarter.
Excess and umbrella policies were generally stable, with only moderate adjustments. However, risks with exposure to the United States saw increases of between 5% and 10%, reflecting heightened underwriting caution linked to litigation and regulatory risks.
Financial lines pressured by IPO shift
Financial and professional lines insurance across Asia declined by 10% in the fourth quarter. This marks an acceleration from the 8% fall recorded previously.
A key factor behind the drop was the shift in Chinese initial public offerings toward regional exchanges, particularly in Hong Kong SAR. This shift reduced premium volumes and intensified competition in directors’ and officers’ insurance.
Hong Kong SAR and Malaysia recorded the largest declines in this segment, at 15% and 14% respectively. These figures compare with earlier quarterly drops of 5% and 18%.
Cyber insurance rates Asia fall despite rising demand
Cyber insurance rates Asia weakened further, falling 10% in the quarter compared with a 5% decline in the previous period. Despite falling rates, demand remains strong as companies face rising cyber incidents and stricter regulatory requirements.
Insurers have responded by broadening coverage. New protections now include cyber-related property damage, social engineering fraud, and supply chain attacks.
Thailand recorded the steepest cyber rate decline at 23%. Indonesia, Korea, and Singapore each posted declines of 13%.
Outlook for commercial insurance rates Asia
The continued fall in commercial insurance rates Asia suggests that buyers remain in a favorable negotiating position. However, certain risk exposures, particularly those linked to the United States and complex cyber threats, may face pricing pressure in future quarters.
At the same time, growing cyber demand and evolving risk landscapes could gradually reshape underwriting strategies. For now, soft conditions dominate most lines across the region, even as insurers adapt to emerging threats and regulatory changes.
