Commercial insurance rates across Asia declined by 5% in the second quarter of 2026, with cyber insurance recording the sharpest fall as insurer capacity and competition continued to increase across the region, according to Marsh's latest Global Insurance Market Index.
Property insurance rates fell by 5% for the fifth consecutive quarter, as increased insurer capacity and competition enabled some clients to secure improved terms, including higher limits and fewer coverage restrictions.
Casualty insurance rates declined by 3%, compared with a 2% fall in the previous quarter.
General liability rates were either stable or lower across most Asian markets, although Japan saw localised increases. Umbrella and excess liability rates were broadly stable or lower, with South Korea recording decreases of up to 15%, while Japan saw increases of up to 5%.
Financial and professional lines rates fell by 7%, unchanged from the previous quarter. Directors and officers (D&O) liability rates declined across most Asian markets, while professional liability and financial institutions rates also generally decreased. Capacity remained stable, and large, complex programmes continued to attract strong insurer interest.
Cyber insurance rates recorded the steepest decline, falling by 8% compared with a 6% decrease in the first quarter. Most Asian markets saw lower cyber rates, while Vietnam remained stable. Insurers continued to deploy additional capacity in priority markets and sectors, driving heightened competition.
Marsh said regulators across the region were calling for stronger cybersecurity measures in response to rising threats linked to artificial intelligence (AI).
Insurers remained cautious about AI-related exposures, often applying sub-limits and exclusions. However, most clients were still able to obtain higher limits and broader coverage at renewal.
The broker also noted that first-time buyers in Southeast Asia were increasingly purchasing cyber insurance as governments placed greater emphasis on cyber resilience.