Global Commercial Insurance Rates Continue Downward Trend in Q1 2025

Global commercial insurance rates fell by an average of 3 percent in the first quarter of 2025, marking the third consecutive quarterly decline, according to Marsh's Global Insurance Market Index. The report notes that this downward trend follows 7 years of quarterly rate increases and is largely driven by increased insurer competition across nearly all regions and product lines.

Per Marsh, the rate declines were broad-based, with every region and major product line seeing reductions except for casualty. The United Kingdom and Pacific regions experienced the largest composite rate decreases, at −6 percent and −8 percent, respectively. The United States saw a 1 percent decrease, driven primarily by a 9 percent decline in property insurance rates.

According to the report, property insurance rates globally dropped by 6 percent, with the Pacific and US markets showing the steepest declines at −9 percent. The United Kingdom also saw a 6 percent decrease, while other regions experienced low single-digit reductions.

Marsh said that US casualty rates rose 8 percent in the first quarter, contributing to a global casualty rate increase of 4 percent. This was attributed to the severity of claims and large jury awards, known as "nuclear verdicts," which led to reduced underwriting capacity and smaller line sizes from insurers.

Financial and professional lines decreased by 6 percent globally, consistent with the previous quarter, according to Marsh. Notably, these lines declined by 10 percent in both the UK and Pacific regions. Cyber insurance rates also fell by 6 percent, with the largest regional drop of 10 percent occurring in Europe.

Per Marsh, clients generally benefitted from improved pricing and enhanced coverage terms, with insurers competing not only on rates but also on the breadth of terms and conditions. This competitive environment enabled clients to negotiate more favorable policy structures and explore options like self-insurance and captive insurance.

The report emphasizes that while current trends point to ongoing insurer competition, external events such as major catastrophes could quickly reverse pricing momentum.

The report reflects the segment mix of Marsh's client portfolio.