The global commercial insurance sector recorded a 4% average decrease in rates during the second quarter of 2025 (Q2 2025), according to Marsh’s latest Global Insurance Market Index.
This marks the fourth consecutive quarter of declining rates, extending a trend that began in early 2021 after nearly seven years of quarterly increases.
Marsh, a business of Marsh McLennan, attributes the ongoing reduction to heightened competition among insurers.
This competitive environment has led to increased market capacity, more favourable pricing, and broader coverage terms for buyers.
The report noted that all regions except the US experienced year-over-year composite rate decreases in the second quarter, with reductions ranging from 4% to 11%.
The US market remained unchanged.
The Pacific region saw the sharpest composite rate drop at 11%, followed by the UK at 6%.
Asia, Latin America and the Caribbean, and the India, Middle East, and Africa region each reported a 5% decline.
Meanwhile, Canada and Europe both saw rates fall by 4%.
Property insurance rates globally fell by 7% in the second quarter, compared to a 6% drop in the previous quarter.
The largest property rate reductions were in the US and Pacific regions, at 9% and 13%, respectively.
Other regions reported property rate declines between 4% and 7%.
In contrast, casualty insurance rates increased by 4% worldwide, with the US experiencing a 9% rise.
The report links this to the frequency and severity of casualty claims, including significant jury awards.
Financial and professional lines rates continued to moderate, decreasing by 4% globally in the second quarter, following a 6% decrease in the first quarter.
These lines saw rate reductions in every region except the US, where rates were steady.
Cyber insurance pricing also declined, with a 7% global decrease.
The most significant reductions were in Latin America and the Caribbean (17%) and Europe (15%), with all regions seeing lower rates.
Marsh’s analysis highlighted that increased insurer competition is driving both lower premiums and expanded coverage options.
John Donnelly, president of global placement at Marsh, commented that while clients are benefiting from more competitive pricing and broader terms, the upward trend in US casualty rates presents a challenge.
“Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options. Against this backdrop, rising US casualty rates are a concern for clients,” he said.
He also pointed to ongoing geopolitical issues, such as tariffs and cross-border disputes, as factors contributing to market uncertainty.
“As geopolitical issues, including tariffs and cross-border conflicts, create new challenges and uncertainties, organisations now have access to many attractive traditional and alternative financing strategies to manage their risks,” Donnelly said.
Donnelly advised that organisations should regularly review their risk exposures and appetite and work with brokers to identify opportunities for improved coverage compared to recent years.
