Global Commercial Insurance Rates Drop for Fifth Straight Quarter

Global commercial insurance rates declined by an average of 4 percent in the third quarter of 2025, according to Marsh's Global Insurance Market Index. This marks the fifth second-quarter consecutive quarterly drop and matches the 4 percent decrease recorded in 2025. Marsh attributed the decline to growing competition among insurers, favorable reinsurance pricing, and increased market capacity.

All regions experienced year-over-year composite rate decreases. The Pacific region saw the steepest drop at 11 percent, followed by Latin America and the Caribbean and the UK, each with 6 percent declines. Rates in Asia and the India, Middle East, and Africa region fell by 5 percent; Europe by 4 percent; and Canada by 3 percent. The US, which had seen flat rates in the previous quarter, recorded a 1 percent decrease.

The ongoing downward trend began in first-quarter 2021, following a period of 7 years marked by consistent quarterly increases.

Among individual lines, property insurance saw a global rate decrease of 8 percent, following a 7 percent decline in second quarter. The largest regional drops occurred in the Pacific (14 percent) and both the US and Latin America and Caribbean (9 percent). Other regions posted declines between 3 percent and 7 percent.

Cyber-insurance rates fell 6 percent globally, with Europe posting the largest decline at 12 percent. Latin America and the Caribbean and the UK each saw 11 percent decreases, while rates in the Pacific dropped by 10 percent.

Financial and professional lines also continued to decline, with global rates down 5 percent, compared to a 4 percent drop in the previous quarter. Regional decreases ranged from 10 percent in the Pacific to 2 percent in the US.

Casualty insurance was the only segment to experience an increase, with global rates rising by 3 percent, down slightly from 4 percent in second quarter. The increase was primarily driven by an 8 percent rise in the US, which Marsh linked to the ongoing frequency and severity of claims, particularly those involving large jury awards.

"With the exception of US casualty, clients are benefiting not only from lower rates but also from opportunities to negotiate improved terms and broader coverage," said John Donnelly, president, global placement, Marsh. "These rate trends remain consistent in a market characterized by ample capacity. Barring unforeseen changes in conditions, we expect these trends to continue."