Commercial insurance rates sink 5% across Asia amidst rise in cyber demand

Insurers broadened protection to cover supply chain attacks and social engineering fraud.

Commercial insurance rates across Asia fell by 5% in the latest quarter, unchanged from the previous quarter, reflecting continued soft market conditions across most major lines, according to Marsh’s Asia Insurance Market Rates: 2025 Fourth Quarter.

Within the region, Vietnam and Japan were the only markets to record increases in commercial insurance rates, rising 15% and 1% respectively. 

This compares with a decline of 11% in Vietnam and a 6% increase in Japan in the prior quarter. 

By contrast, South Korea and Taiwan posted the largest falls, with rates down 17% and 16%, compared with declines of 25% and 14% in the previous quarter.

Asia casualty insurance rates declined by 1% in the quarter, easing from a 3% drop previously. 

Japan remained the only market to see an increase, with rates up 7%, unchanged from the prior quarter. 

Korea recorded the steepest fall in casualty rates at 17%, compared with a 21% decline previously. 

Excess and umbrella rates were generally flat or saw only moderate movement, whilst risks with exposure to the United States rose by between 5% and 10%.

Financial and professional lines across Asia fell by 10% during the quarter, accelerating from an 8% decline previously. 

A shift in Chinese initial public offerings towards regional exchanges, particularly in Hong Kong SAR, reduced premium volumes and added downward pressure on directors’ and officers’ insurance rates. 

Hong Kong SAR and Malaysia recorded the largest declines at 15% and 14% respectively, compared with falls of 5% and 18% in the prior quarter.

Cyber insurance rates in Asia also weakened, falling 10% in the quarter, compared with a 5% decline previously. 

Demand remained strong due to rising cyber incidents and tighter regulatory requirements, with insurers expanding coverage to include cyber-related property damage, social engineering fraud, and supply chain attacks. 

The steepest rate decline was seen in Thailand at 23%, followed by Indonesia, Korea, and Singapore, each down 13%.