Insurance rates fall across major lines in Asia during Q2 2025

Property insurance rates dipped 5%, driven by strong competition amongst insurers. 

Insurance rates in Asia dropped across all major product lines in the second quarter of 2025, with the overall market recording a 5% decline, according to client portfolio data from Marsh.

Property insurance rates also fell 5%, driven by strong competition amongst insurers. 

This competition—often influenced by international market dynamics—resulted in more favourable terms for clients, including improved sub-limits and deductibles. 

Long-term agreements with discounts and low-claims bonuses were widely used by insurers to retain clients. 

However, underwriters remained cautious about high-risk industries and companies with worsening loss histories.

Casualty insurance rates decreased 2% amidst stable capacity and competitive pricing. Clients without recent losses typically secured larger rate cuts. 

Underwriters continued to pay close attention to exposures tied to the US, past claims, and emerging risks. Regional differences remained, with Korea experiencing intense pricing pressure amongst local and international carriers.

Financial and professional lines saw a sharper rate drop of 7%. 

A surge in capital market activity, particularly IPOs, created new demand for directors and officers (D&O) liability insurance.

D&O rates fell by 5% to 15% across the region. 

Rates for financial institutions and professional indemnity insurance declined by 5% to 10%.

Cyber insurance also posted a 7% rate decline. More clients expanded their coverage, and first-time buyers entered the market. 

Insurers increased their cyber capacity, introducing new options such as personal cyber insurance. 
Underwriters and companies continued to monitor third-party cyber risks, especially those linked to digital supply chains.