Composite insurance rates in the fourth quarter of 2025 decreased by 5% in the Asia region, according to the "Global Insurance Market Index' report published by the world's biggest insurance broking group Marsh.
Property insurance rates declined 5% amid abundant capacity and high levels of insurer competition.
Insurers made greater use of long-term agreements, offering low-claims bonuses and multi-year discounts. Capacity was widely available across sectors, though underwriters stayed cautious on accounts with worsening loss experience.
Casualty insurance rates trended lower 1%, compared to a 3% decline in the prior quarter.
General liability rates were flat or declined across most markets, with Japan an outlier seeing increases. Auto liability rates rose in Japan, the Philippines and Vietnam, while remaining broadly stable or easing elsewhere. Excess and umbrella rates were largely flat to moderately changed, although US-exposed risks recorded increases of around 5%–10%.
Financial and professional lines rates decreased 10%, compared to 8% in the prior quarter.
Directors and officers (D&O) liability rates softened across most markets, with Vietnam showing early signs of stabilisation. The shift of Chinese IPOs to regional exchanges, particularly Hong Kong, reduced premium volumes and added downward pressure on D&O pricing. Financial institutions and professional liability rates fell by 5%–7.5%, driven by heightened insurer competition.
Cyber insurance rates trended lower 10%, compared to 5% in the prior quarter.
Rising cyber incidents and evolving regulatory requirements sustained strong market demand. Insurers expanded coverage to address cyber property damage, social engineering fraud and supply chain attacks. Policies were updated to cover generative AI risks, while underwriters heightened scrutiny of third-party exposures in complex supply chains.