Global Insurance Rates Decline Again Amid Growing Market Competition

Global commercial insurance rates dropped by 4 percent in the second quarter of 2025, marking the fourth consecutive quarterly decline, according to Marsh's Global Insurance Market Index. The report attributes the downward trend to increased competition among insurers, which has led to broader coverage and more favorable pricing for clients in most regions and across most product lines.

Per Marsh, the United States was the only major market where overall rates remained flat. All other regions experienced year-over-year composite rate decreases ranging from 4 percent to 11 percent. The Pacific region saw the largest reduction at 11 percent, followed by the United Kingdom with a 6 percent decline. Europe, Canada, Asia, Latin America and the Caribbean (LAC), and India, the Middle East, and Africa (IMEA) all recorded declines between 4 percent and 5 percent.

According to the report, property insurance rates dropped by 7 percent globally. The steepest reductions were seen in the Pacific and US markets—13 percent and 9 percent, respectively—while other regions reported declines between 4 percent and 7 percent.

Casualty was the only major product line to experience rate increases, rising by 4 percent globally. Marsh said this was largely driven by a 9 percent increase in the United States, where insurers are responding to higher claim frequency and severity, including large jury awards. Excess casualty policies, in particular, faced more significant rate hikes compared to primary lines.

Financial and professional lines continued a trend of moderation, decreasing by 4 percent globally in the second quarter. Rates fell in every region except the United States, where they remained flat, according to Marsh.

Cyber insurance rates also declined by 7 percent globally, per Marsh. The largest decreases occurred in LAC and Europe—down 17 percent and 15 percent, respectively—with other regions also recording reductions.

According to the report, many companies used the current market conditions to improve policy terms and explore alternative risk financing strategies, such as captives, parametric coverage, and self-insurance. Marsh said clients increasingly optimized existing captives or created new ones as part of broader risk management strategies.

Per Marsh, rising market capacity and intense competition among insurers are expected to continue influencing pricing trends throughout 2025, unless disrupted by unforeseen market events such as major catastrophes or geopolitical developments.