The 2025 Airmic Conference is approaching, and industry experts are discussing the current trends in commercial insurance rates. According to Marsh’s ‘Global Insurance Market Index’, global commercial insurance rates declined by an average of 3% in Q1 2025, continuing a trend that began in early 2021. Nina Arquint, newly appointed UK & Ireland CEO of Swiss Re Corporate Solutions, shared her insights with Insurance Business ahead of the conference.
Current Market Trends
Arquint noted that the UK market has seen a drop in rates across several lines, particularly in casualty and property insurance. “We’re coming from a hard market environment, so it has overall been a solid market but one you can now see softening across different lines of business,” she said. The global risk environment is becoming increasingly complex, with factors such as climate change, geopolitical instability, and technological advancements impacting businesses.
Changing Risk Landscape
The latest Swiss Re sigma report projected that insured natural catastrophes are on trend to hit $145 billion in 2025, driven by secondary perils such as severe convective storms, floods, and wildfires. Arquint emphasized the need for the insurance industry to be aware of the dynamic risk landscape and ensure that pricing remains healthy and resilient. “It is a very competitive market out there, and I think competition as such is not a bad thing, it keeps you on your toes and it keeps driving innovation,” she said.
Commercial Insurance Pricing Variations
Arquint examined the variations in commercial insurance rates across different business lines in the UK. Casualty insurance rates have been impacted by high competition, particularly for non-US casualty business. Financial and professional lines rates decreased by 6% globally, with a 10% decline in the UK. Property rates also declined by 6% in the UK, in line with the global decrease.
Transparency in Insurance Pricing
Clients are questioning the fluctuations in property rates, particularly in light of the expected $145 billion in insured natural catastrophes in 2025. Arquint emphasized the importance of transparency in insurance pricing, including the need to understand how premiums are calculated and what factors are considered. “Clients want to know how a premium comes together, and what factors are considered in setting a rate,” she said. This transparency is driving demand for alternative risk transfer (ART) vehicles, such as captives.
Future Outlook
Looking ahead, Arquint said that her team will focus on delivering for multinational companies and staying vigilant on pricing and market conditions. They will deepen their local market presence in the UK and Ireland, working closely with brokers and clients to understand their needs. Advancements in data and technology capabilities will also be key to providing smarter risk insights and enhancing decision-making for customers. As for the commercial insurance pricing landscape, Arquint noted that rates are increasingly volatile and the global risk environment is interconnected. “When I look at the risk landscape and the pricing cycle, I don’t think we will see any significant deterioration in some of these lines of business, because it would, in my view, not be justified from that risk perspective. But we will see.”
