Global commercial insurance rates declined 4% in the third quarter of 2025, marking the fifth consecutive quarterly decrease following seven years of increases, according to the Global Insurance Market Index released today by insurance broker and risk advisor Marsh.
The decline was attributed to significant available capacity and heightened competition among insurers for business, coupled with more favorable reinsurance pricing for insurers, according to the report.
All global regions experienced composite rate decreases in the third quarter. The Pacific region saw the largest decline at 11%, followed by Latin America and the Caribbean and the United Kingdom at 6% each. Rates fell 5% in both Asia and the India, Middle East and Africa region; 4% in Europe; and 3% in Canada. In the United States, rates declined 1% after remaining flat in the second quarter.
The current period follows several years during which rates generally increased. Rate decreases were experienced across all regions and most product lines in the third quarter.
Property insurance rates declined 8% globally, with the Pacific region experiencing the largest decrease at 14%. The United States and Latin America and the Caribbean both saw 9% declines, while all other regions declined between 3% and 7%.
Financial and professional lines rates decreased 5% globally, declining in every region. Reductions in financial and professional lines have been in the mid-single digits for 12 of the past 13 quarters, according to the report.
Cyber insurance rates decreased 6% globally, with declines seen in every region. Europe experienced a 12% decrease, while Latin America and the Caribbean and the United Kingdom both saw 11% declines.
The main product line experiencing rate increases was casualty insurance, which rose 3% globally, down from 4% in the second quarter. The increase was attributed to an 8% rise in the United States due to the frequency and severity of claims, many of which are characterised by large jury awards.
“With the exception of US casualty, clients are benefiting not only from lower rates but also from opportunities to negotiate improved terms and broader coverage,” said John Donnelly, president of global placement at Marsh. “These rate trends remain consistent in a market characterised by ample capacity.”
In regions outside the United States, casualty insurance rates increased 1% in Europe and declined up to 7% in all other regions, as their legal environments typically do not result in verdicts of the size experienced in the United States, according to the report.
Every year, insurers monitor the North America hurricane season, which runs from June 1 through November 30. To date in 2025, there have been few storms and none of significant note, the report highlighted.
According to Marsh, many clients, particularly those with strong risk profiles, used the competitive environment to negotiate better terms, enhance coverage and explore alternative risk transfer solutions such as self-insurance and captives.
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