Global Insurance Rates Fall 5 Percent in Q1 2026

Global commercial insurance rates declined by 5 percent in the first quarter of 2026, marking the 7th consecutive quarterly decrease, according to Marsh's latest Global Insurance Market Index. The drop follows a 4 percent decline in the 4th quarter of 2025, reflecting sustained competitive pressures and ample insurer capacity across major product lines. 

All regions reported year-over-year composite rate decreases during the quarter. The Pacific region recorded the steepest decline at 12 percent, followed by India, the Middle East, and Africa at 10 percent. Latin America and the Caribbean and the United Kingdom each saw rates fall by 8 percent, while Canada experienced a 6 percent decline. Europe and Asia both posted 5 percent decreases. In the United States, where rates were flat in the prior quarter, composite pricing edged down 1 percent. 

Property insurance rates dropped 9 percent globally, matching the trend observed in late 2025. Double-digit declines were recorded in several regions, including the Pacific at 14 percent, Latin America and the Caribbean at 12 percent, and the United States, United Kingdom, and India, the Middle East, and Africa each at 10 percent. Europe saw an 8 percent decrease, while Canada and Asia posted declines of 6 percent and 5 percent, respectively. 

Casualty rates diverged from the broader trend, rising 3 percent globally, though this marked a slowdown from a 4 percent increase in the previous quarter. The increase was driven largely by a 9 percent rise in the United States, where claims severity continues to pressure pricing. Outside the United States, casualty rates declined, particularly for organizations without US exposure. 

Financial and professional lines rates decreased 5 percent globally, with reductions across all regions. The United Kingdom recorded the largest drop at 8 percent, followed by the Pacific and Asia at 7 percent each. The United States saw a more modest decline of 2 percent. 

Cyber insurance pricing also continued to ease, falling 5 percent globally after a 7 percent decline in the previous quarter. India, the Middle East, and Africa led with a 14 percent decrease, while Latin America and the Caribbean saw an 11 percent drop. US cyber rates declined by 2 percent. 

"While the Middle East conflict is being carefully observed for its potential impact on insurance markets, the current competitive environment is expected to persist as insurer profitability remains strong," John Donnelly, president, global placement, Marsh Risk, said.  

This is especially true in lines such as property, which is supported by favorable reinsurance terms and significant capacity. Given broad economic uncertainty and inflationary pressures, clients have the opportunity to optimize their program structures, increase limits, or adjust retentions to improve the resilience of their programs in the year ahead."