Global Commercial Insurance Rates Drop 4 Percent in Q4 2025

Global commercial insurance rates declined an average of 4 percent in the fourth quarter of 2025, marking the sixth consecutive quarterly decrease, according to the latest Global Insurance Market Index from Marsh Risk, a business of Marsh and a global insurance broker and risk adviser.

The decline was driven by increased competition among insurers, favorable loss conditions, lower reinsurance pricing, and expanded market capacity. The latest quarter extends a moderating trend that began in the first quarter of 2021, following roughly 7 years of consistent quarterly rate increases.

All global regions recorded year-over-year composite rate decreases in the fourth quarter except the United States. The Pacific region experienced the largest decline at 12 percent, followed by India, the Middle East, and Africa at 10 percent. Rates fell 7 percent in Latin America and the Caribbean, the United Kingdom, and Canada, while Europe and Asia recorded decreases of 6 percent and 5 percent, respectively. In contrast, the composite rate in the United States was flat in the fourth quarter, following a 1 percent decline in the third quarter.

Property insurance rates declined 9 percent globally, compared with an 8 percent decrease in the prior quarter. Double-digit reductions were reported in the Pacific at 14 percent; Latin America and the Caribbean at 12 percent; India, the Middle East, and Africa at 11 percent; and the United Kingdom at 10 percent. Property rates declined 8 percent in the United States, Canada, and Europe, and 5 percent in Asia.

Casualty insurance rates increased 4 percent globally, up from a 3 percent increase in the third quarter. The rise was largely driven by the United States, where casualty rates increased 9 percent compared with 8 percent in the previous quarter. Ongoing concerns among insurers about the frequency and severity of casualty claims, including large jury awards, contributed to the increase.

Financial and professional lines rates declined 4 percent globally in the fourth quarter, compared with a 5 percent decrease in the third quarter. Most regions experienced declines, ranging from 11 percent in India, the Middle East, and Africa to 5 percent in the United Kingdom and Canada. Rates in the United States were flat, compared with a 2 percent decline in the prior quarter.

Cyber insurance rates fell 7 percent globally, with decreases reported in every region. Declines ranged from 14 percent in Latin America and the Caribbean to 3 percent in the United States.

"The global insurance market has been characterized by ample capacity across most lines and regions over the last six quarters," John Donnelly, president of Global Placement at Marsh Risk, said. "In the absence of unforeseen circumstances, we expect this trend to continue throughout 2026."