Global commercial insurance rates fell by 3% in the first quarter of 2025, continuing a trend of decreasing rates for the third consecutive quarter. This change in trend follows seven years of rising rates and is attributed to heightened competition in the global insurance market due to increased capacity from existing providers and new entrants, according to the latest Global Insurance Market Index report published by broker Marsh on April 24, 2025.
The report indicates that year-on-year commercial rate falls were observed in every global region in Q1 2025. The Pacific region saw an 8% fall in commercial lines rates, while the UK experienced a 6% drop. India, Middle East, and Africa (IMEA) noted a 4% decrease, and Asia and Canada recorded a 3% reduction. Latin America and the Caribbean (LAC) saw a 2% dip, and the US and Europe experienced a 1% fall.
Regional and Line-Specific Trends
Property, financial and professional, and cyber lines witnessed significant rate decreases, driven by insurers actively seeking new business opportunities and expanding their offerings. However, casualty rates bucked this trend, increasing by 4% globally in Q1 2025, primarily due to an 8% rise in rates for this line of business in the US. This increase was driven by the high frequency and severity of casualty claims.
John Donnelly, president of global placement at Marsh, stated, “Driven by increased insurer competition and favourable reinsurance pricing, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty.” He added, “We expect the overall trend to continue and for insurer competition to intensify, barring unforeseen changes in conditions.”
Donnelly further emphasized Marsh’s commitment to helping clients manage costs, protect their balance sheets, and successfully navigate the continued improvement in market conditions.
