How did the region’s insurance market rates compare with each other?

Korea, Malaysia, Singapore, and Thailand saw the largest commercial rate drops.

Commercial insurance rates in Asia declined by 3% in the latest quarter, compared to a 4% decrease in the previous period. Korea, Malaysia, Singapore, and Thailand saw the largest rate drops at -9%, -7%, -7%, and -6%, respectively, according to Marsh.

"As we observe a continued softening of insurance rates in Asia, it is an opportune time for clients to reassess their risk management approaches and address any protection gaps amidst emerging risks such as supply chain disruptions and extreme climate events,” Brent Clawson, Global Placement Leader for Marsh Asia, said in a media release.

In contrast, Taiwan and Japan recorded increases of 11% and 3%.  

Property insurance rates fell by 3%, with insurers seeking business from companies demonstrating strong risk management. 

Increased risk appetite in selected segments led to more capacity, whilst portfolios with less exposure to catastrophes saw higher rate reductions. 

The largest declines were recorded in Korea and Malaysia (-8%), followed by Thailand and Singapore (-6%). Taiwan saw the highest increase at 13%, whilst Japan’s rates rose by 3%.  

Casualty insurance rates dropped by 1%. Organisations without losses and benefiting from competitive London capacity saw reductions of 5% to 10%. 

However, businesses with significant exposure in North America faced rising costs due to higher primary and umbrella capacity rates. 

The steepest declines were in Korea (-12%), Singapore (-6%), and Thailand (-6%), whilst Japan was the only market to see an increase at 6%.  

Directors and officers (D&O) liability rates drove overall changes, with China seeing the biggest drop at 20% to 25%, followed by Korea (-11%) and Singapore (-11%). Taiwan was the only market to record an increase at 1%.  

Cyber insurance rates declined by 11%, driven by growing competition amongst insurers. However, high-severity, low-frequency ransomware claims added volatility. Insurers remained cautious about risks associated with AI. 

Singapore (-18%), Indonesia (-13%), Thailand (-13%), and Hong Kong (-13%) saw the sharpest drops, whilst the Philippines was the only country to experience a rate increase at 3%.