Asia’s commercial insurance rates drop 5% in Q1 2026

This marks the seventh straight quarter of declines across the region.

Commercial insurance rates in Asia fell by 5% in the first quarter of 2026 (Q1 2026), making it the seventh quarter in a row of rate decreases.

According to Marsh's Asia Insurance Market Index Q1 2026, Vietnam and Japan were the only markets that recorded rate increases, with 11% (15% in Q4 2025) and 3% (1% in Q4 2025), respectively.

Property insurance rates in Asia also fell by 5%, unchanged from recent quarters. 

Casualty insurance rates declined by 2%, a wider drop than the 1% decrease in the previous quarter. 

General liability pricing either fell or remained stable in most markets, whilst Japan was an exception, recording increases. 

Umbrella and excess liability rates were generally flat or moderated across the region, again with Japan standing out as an outlier. 

Buyers continued to benefit from the capacity provided by both regional and international insurers.

Financial and professional lines saw a 7% drop in rates, compared with a 10% decline in the previous quarter. 

Directors’ and officers’ liability and professional indemnity pricing decreased in most markets, whilst financial institutions' cover also trended lower overall, with some country-specific variations.

A shift in Chinese initial public offering activity towards regional exchanges reduced the availability of large premium opportunities and increased competition amongst insurers.

Cyber insurance rates declined by 6%, easing from a 10% fall in the previous quarter. Increased capacity, including new entrants such as managing general agents, supported competition and maintained favourable conditions for buyers. 

Insurers also broadened coverage and refined policy wording to address more complex risks, including those linked to artificial intelligence, physical cyber threats and fraud.

Despite falling prices, demand remained firm. 

Rising cyber incident frequency and tighter regulatory requirements led more businesses to incorporate cyber insurance into their risk management strategies, with some clients using premium savings to purchase additional cover.