Global Commercial Insurance Rates Fall 5 Percent in Q3

Global commercial insurance rates declined 5 percent in the third quarter of 2026, marking the ninth consecutive quarterly decrease, according to Marsh's latest Global Insurance Market Index. The decline followed a 6 percent reduction in the second quarter, as strong insurer profitability, ample capacity, and competition continued to drive pricing lower across most regions and coverage lines.

Property insurance recorded the largest decrease among major coverage lines, with global rates falling 10 percent, compared with a 12 percent decline in the previous quarter. Casualty rates increased 1 percent globally, primarily because of continued pricing pressures in the US market.

All eight regions tracked by Marsh reported overall rate decreases. India, the Middle East, and Africa experienced the largest decline at 14 percent, followed by the Pacific at 12 percent, and Latin America and the Caribbean at 9 percent. Rates decreased 8 percent in the United Kingdom and 6 percent each in Canada, Europe, and Asia. The United States recorded the smallest decline at 1 percent, compared with 2 percent in the second quarter.

Favorable reinsurance conditions, higher investment returns, and expanded capacity from new market entrants and managing general agents contributed to increased competition. Insurance buyers were able to negotiate broader coverage, higher limits, lower deductibles, and longer-term agreements. However, catastrophe-exposed and loss-affected accounts generally experienced less favorable conditions.

"Geopolitical uncertainty and broader economic concerns remain part of the operating environment, and many insurance buyers were more inclined to retain premium savings rather than reinvesting them in additional coverage. The current environment continues to present opportunities for insureds to enhance their program structures and examine alternative strategies to manage risk," John Donnelly, president of global placement at Marsh Risk, said.

Property rates declined across all regions, including decreases of 15 percent in India, the Middle East, and Africa; 14 percent in the Pacific; 13 percent in Latin America and the Caribbean; and 10 percent in the United States. A relatively benign US hurricane season and lower reinsurance costs supported favorable underwriting results and competitive pricing.

Casualty insurance remained an exception to the broader downward trend. US casualty rates increased 6 percent, compared with 7 percent in the preceding quarter. Litigation costs, large settlements, social inflation, nuclear verdicts, and liabilities associated with per- and polyfluoroalkyl substances continued to influence underwriting decisions. Insurers maintained selective capacity, higher attachment points, and smaller line sizes for certain US-exposed risks.

Financial and professional lines rates declined 3 percent globally, marking the 17th consecutive quarterly decrease. The United States was the only region to record an increase, at 1 percent. Directors and officers liability coverage remained an area of underwriting scrutiny, particularly for organizations facing claims, financial difficulties, or litigation exposure.

Cyber insurance rates decreased 4 percent globally for the 13th consecutive quarter, although US rates remained flat. Additional capacity allowed some buyers to expand coverage and reduce retentions. Insurers continued to scrutinize artificial intelligence exposures, third-party vendors, privacy risks, and ransomware as claims severity increased.

Marsh reported that early signs of pricing stabilization were emerging in some coverage lines, although competition remained strong across much of the commercial insurance market.