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Insurance rates decline across major product lines in 2Q2025

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Insurance rates in Asia fell by 5% in the second quarter of this year, according to Marsh's latest Global Insurance Market Index. The pace of decline was bigger than the 4% drop in global commercial insurance rates during the same quarter.


2Q2025 was the sixth straight quarter of decline in rates in Asia.


The latest market update also reveals ongoing rate reductions across multiple insurance sectors in Asia, reflecting heightened competition and evolving client demands.


Property insurance rates


Property insurance rates declined by 5% as competition remained high. This was a steeper decline than the previous quarter’s 3%.


Korea experienced the most significant drop at 28%, followed by Taiwan with an 8% decrease.


Other highlights of the property insurance market in Asia in 2Q2025 are:


  • Increased competition among insurers, driven by international markets, typically led to positive results for clients on sub-limits and deductibles.

  • Insurers generally prioritised 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 softened by 2%, continuing a moderation trend amid stable market capacity and competitive pricing.


  • 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.


Rates of financial and professional lines fall


Financial and professional lines rates declined by 7%, a slight improvement over 1Q2025’s 8% drop. Malaysia and China saw the largest declines at 13%, followed by Korea at 12%.


  • 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 by 7%,  compared to 8% in the prior quarter. Thailand notably saw a sharp softening, with rates falling between 18% and 28%.

  • The market is expanding as more clients, including first-time buyers, secure higher coverage limits.

  • Increased capacity and innovative products, such as personal cyber insurance, are emerging.

  • Underwriters and companies remain focused on third-party cyber risk, particularly in assessing digital supply chains and broader cyber exposures.


“Insurance rates in Asia have been softening due to increased competition among insurers, offering organisations access to favourable terms and broader coverage options. However, market conditions can vary across the region. This is an opportune time to assess risk appetite and broaden coverage while market conditions remain competitive,” Marsh Asia global placement leader Brent Clawson said.


Regional comparisons


Of the seven regions into which the report divides the global insurance market, the US saw flat composite rates in 2Q2025. The UK and the Pacific regions experienced the largest composite rate decreases of 6% and 11%, respectively. Rates in Canada and Europe fell by 4% while those in Latin America dropped by 5%, the same as in Asia.



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