Asia insurance rates fall 5% in Q2 2026 as competition intensifies

Cyber pricing dropped 8% across the region.

Commercial insurance rates across Asia fell 5% in the second quarter of 2026, matching the decline recorded in the previous quarter, as insurers continued to compete for business and capacity remained available.

Globally, commercial insurance rates fell 6% in the quarter, marking the eighth consecutive quarterly decline in composite rates, according to Marsh's Asia Insurance Market Index Q2 2026.

Asia’s property insurance rates fell 5% in the second quarter amidst increased insurer competition and capacity. 

Vietnam recorded the largest increase, with rates rising 13% due to regulatory pricing tariffs.

Taiwan and Korea recorded the largest property rate decreases, at 18% and 13%, respectively.

Casualty insurance rates in Asia declined 3%, supported by ample regional and global capacity. 

Korea recorded the largest decrease at 12%, unchanged from the previous quarter. General liability rates either declined or remained stable across most markets, although Japan saw localised increases.

Clients generally benefited from capacity provided by both regional and global insurers, according to the findings.

Financial and professional lines rates declined 7% across Asia as regional capacity remained stable. 

China recorded the largest decrease at 14%, compared with 10% in the previous quarter. Directors and officers liability rates fell across most Asian markets but remained stable in Vietnam.

Cyber insurance rates in Asia fell 8% as competition increased. Korea recorded the largest decline at 18%, compared with 13% in the previous quarter.

Insurers continued to add capacity in priority markets and sectors, increasing competition. At the same time, regulators called for stronger cybersecurity measures as AI-driven cyber threats increased.

Insurers took a more cautious approach to AI-related exposures, often applying sub-limits and exclusions. However, most clients were still able to secure higher limits and broader coverage at renewal.