Composite insurance rates in Asia fell 3%, on average, in the first quarter of 2025 due to competition, according to the Global Insurance Market Index released by Marsh.
This increased competition is fuelled by greater capacity from existing insurers as well as the entry of new players. The effect is especially noticeable in property, financial and professional and cyber insurance segments, where insurers are actively pursuing new business and broadening their coverage options, the report said.
Other notable findings include:
- Property Insurance: Rates fell by 3%, driven by strict underwriting practices, particularly in high-risk sectors. The competitive landscape has led to increased long-term agreements and a growing interest in alternative risk transfer solutions. The involvement of international and wholesale markets has contributed to the competitive environment, leading to generally improved outcomes for clients across local, regional, and global insurance programmes.
- Casualty Insurance: A 2% decline was observed, with organisations without losses benefiting from competitive pricing, particularly in London markets. However, businesses with significant US exposure faced rising rates, especially for primary and umbrella coverage. Auto liability rates were generally stable, although increases of 5% to 10% were experienced in Japan and Thailand, indicating regional variations in risk assessments.
- Financial and Professional Lines: The report said this segment in Asia experienced an 8% decrease, largely influenced by reduced rates for directors and officers (D&O) liability insurance. Limited activity in capital markets restricted new business opportunities for insurers, and increased competition for renewal business. The report showed that Malaysia saw a decrease of 18% in Q12025.
- Cyber Insurance: Rates also dropped by 8%, fuelled by heightened competition and concerns over ransomware attacks. Insurers are actively reviewing coverage exclusions and expanding property damage offerings related to cyber risks. Insurers remain deeply concerned about the growing severity and sophistication of ransomware attacks, especially those involving data encryption and disruptions to business operations. Thailand saw a 18% decline in cyber rates in Q12025.
Globally, commercial insurance rates fell by 3% on average in 1Q2025 following a 2% decline in 4Q2024, marking the third consecutive quarterly decrease following seven years of rising rates.