Global Commercial Insurance Rates Extend Decline in Q2 2026

Global commercial insurance rates declined an average of 6 percent in the 2nd quarter of 2026, marking the 8th consecutive quarter of decreases, according to Marsh's latest Global Insurance Market Index. The decline follows a 5 percent reduction in the 1st quarter and reflects continued competition among insurers and ample market capacity.

Property insurance rates fell 12 percent globally during the quarter, while casualty rates increased 2 percent, driven largely by ongoing challenges in the US market. Marsh attributed the broader trend of declining rates to strong insurer profitability, excess capital, lower reinsurance costs, and higher investment returns, all of which have increased competition across major commercial insurance lines.

All global regions recorded year-over-year composite rate declines in the second quarter. India, the Middle East, and Africa posted the largest decrease at 16 percent, followed by the Pacific region at 13 percent and Latin America and the Caribbean at 9 percent. Rates declined 8 percent in the UK, 7 percent in Canada, 6 percent in Europe, and 5 percent in Asia. In the US, the composite rate fell 2 percent after a 1 percent decline in the previous quarter.

"In many markets, in addition to competing based on price, insurers are seeking to differentiate themselves through broader coverage, expanded policy terms, and lower deductibles," John Donnelly, president, global placement at Marsh Risk, said. "While economic uncertainty has led many buyers to retain premium savings, many organizations are also continuing to invest in alternative risk strategies, including captives."

Property insurance experienced the sharpest declines, with double-digit reductions recorded in India, the Middle East, and Africa at 19 percent; the Pacific at 15 percent; Latin America and the Caribbean at 14 percent; the US at 13 percent; and the UK at 11 percent. Europe, Canada, and Asia also posted declines.

Casualty insurance rates rose 2 percent globally, an improvement from the 3 percent increase reported in the 1st quarter. The US remained the only region to record higher casualty rates, increasing 7 percent as insurers maintained strict underwriting standards and pricing discipline for US-exposed risks.

Financial and professional lines rates declined 3 percent worldwide, compared with a 5 percent decrease in the prior quarter. Marsh said underwriting became more selective as market conditions stabilized. The US was the only region to record an increase, with rates rising 1 percent.

Cyber-insurance rates fell 4 percent globally, extending a twelve-quarter streak of declines. India, the Middle East, and Africa recorded the largest decrease at 14 percent, while reductions in other regions ranged from 10 percent in Latin America and the Caribbean to 2 percent in the US.

"Current market conditions are likely to persist absent a severe northern hemisphere storm season or string of major natural catastrophes," Mr. Donnelly said. "This is likely to create additional opportunities for clients to improve coverage and refine program design, that may better position them for future market changes."