Commercial insurance rates across Asia fell 5% in the first quarter of 2026, matching the decline recorded in the previous quarter and marking the seventh consecutive decrease in the regional composite rate, according to a report released by Marsh.
The findings, published in Marsh’s Asia Insurance Market Index for Q1 2026, tracked renewal rate changes across major commercial insurance lines in several Asian markets, including Japan, South Korea, Vietnam, Taiwan, Hong Kong SAR, China, and Thailand.
Property insurance rates in Asia declined 5% during the quarter, driven by intense competition among insurers. Vietnam recorded the largest property rate increase, at 13%, due to regulatory pricing tariffs. South Korea and Taiwan posted the steepest declines, at 18% and 13%, respectively.
Casualty insurance rates fell 2% across the region, compared with a 1% decline in the previous quarter. Japan was the only market to record an increase, with rates rising 3%, down from a 7% increase in Q4 2025. South Korea saw the largest decrease, at 12%, compared with a 17% decline in the previous quarter. Umbrella and excess liability rates remained largely stable or experienced moderate changes, except in Japan.
Rates for financial and professional lines fell 7% in Q1 2026, extending a run of quarterly declines to 12 consecutive quarters. South Korea and China recorded the largest decreases, at 13% and 10%, respectively. Directors and officers (D&O) liability and professional liability rates declined across most Asian markets.
Cyber insurance rates declined 6% during the quarter, a slower pace than the 10% decrease recorded in Q4 2025. Hong Kong SAR, South Korea, and Thailand each reported the largest declines, at 13%. Japan was the only market to record an increase, with rates rising 8%, driven by higher claims activity linked to ransomware incidents.
The report said rising cyber incident frequency and increasing regulatory scrutiny have prompted businesses across Asia to adopt cyber insurance more broadly as part of their risk management strategies. Insurers also refined policy wording and expanded coverage to address more complex exposures, including risks related to artificial intelligence, physical cyber events, and fraud.
