Asia-Pacific construction insurance rates slide in Q3 2025

Smaller firms saw at least 10% cuts and some lower deductibles on indemnity cover.

Construction insurance costs across the Asia-Pacific region are trending downward as of the third quarter of 2025 due to increased competition and new market entrants, according to Marsh's Q3 2025 Global construction market update.

In Asia, professional indemnity premiums have dropped by as much as 50% following a decrease in project-specific deals and more insurers competing for contractor business. General liability rates in the region remain lower than global averages, with competition expected to keep prices down.

Whilst lead insurers for large or complex projects remain strict with terms, secondary insurers are increasingly willing to offer larger coverage limits, which has helped some clients secure lower deductibles and better premium rates.

The Pacific market is seeing similar stability with single-digit rate reductions for standard construction projects.

Smaller businesses are benefiting the most from professional indemnity competition, with rate cuts of at least 10% and some lower deductibles. Larger contractors are also seeing discounts of up to 10%.

To keep current clients, some liability insurers are offering double-digit discounts and long-term locked-in rates. Additionally, primary coverage limits for these policies have risen from $16.8m (A$25m) to $33.5m (A$50m).

Finding lead insurers for projects valued over $0.7b (A$1.0b) remains a challenge as the number of available lead companies has not changed.

($1.00 = AU$1.49)