How did insurance rates compare across Asia in Q3 2025?

Property insurance rates dropped 5% during the period.

Insurance rates across Asia continued to decline in the third quarter of 2025 (Q3 2025), led by sharp decreases in Korea, Thailand, and Malaysia, Aon reported.

According to the firm’s Global Insurance Market Index for Q3 2025, composite rates fell 25% in Korea, 14% in Thailand, and 12% in Malaysia, compared to declines of 25%, 5%, and 8% in the previous quarter. 

In contrast, Taiwan, Japan, and the Philippines saw increases of 14%, 6%, and 5%, respectively.

Aon said that insurer competition and abundant capacity continue to shape Asia’s insurance market, allowing many clients to secure better terms, including improved sub-limits and reduced deductibles.

Property insurance rates in Asia dropped 5% during the quarter, unchanged from the previous period. 

Korea saw the largest fall at 28%, whilst Taiwan, Japan, and the Philippines posted rate increases of 15%, 6%, and 6%, respectively.

Casualty insurance rates declined 3% in the quarter, compared to a 2% fall previously. Aon said clients benefited from strong competition amongst both global and regional insurers. Korea again recorded the largest decline, at 21%, whilst Japan and the Philippines saw increases of 7% and 2%, respectively.

Financial and professional lines fell 8%, compared to a 7% decrease in the prior quarter. 

The firm noted that increased IPO activity in regional exchanges opened new opportunities for insurers, especially in directors’ and officers’ (D&O) liability coverage. 

Malaysia and Thailand posted the largest drops, at 18% and 13%. 

Cyber insurance rates across Asia declined 5% during the quarter, following a 7% drop previously. 

Aon said insurers updated policy terms to address generative AI risks and strengthened oversight of third-party cyber exposures within supply chains. 

Korea and Thailand saw declines of 13% and 8%, whilst Taiwan and the Philippines recorded increases of 8% and 3%.

Aon added that insurers across the region are also paying closer attention to financial resilience, supply chain risks, and exposures linked to per- and polyfluoroalkyl substances (PFAS), as well as emerging cyber threats.