Global Commercial Insurance Rates Continue Decline
Global commercial insurance rates experienced a 3% average decline in the first quarter of 2025, marking the third consecutive quarterly decrease, according to Marsh’s Global Insurance Market Index. This ongoing trend, which began in early 2021, reverses nearly seven years of rising rates and indicates a significant shift in market conditions favourable to insurance buyers.
The report attributes the downward trend in rates to increased insurer competition across all regions and most major product lines. The UK and Pacific regions saw the most substantial composite rate decreases at 6% and 8% respectively, while US rates fell by a more modest 1%. Many clients have capitalized on this competitive environment to negotiate better terms, enhance coverage, and explore alternative risk transfer solutions.
“Driven by increased insurer competition and favourable reinsurance pricing, global commercial insurance trends continued to improve for our clients in the first quarter,” said John Donnelly, president of global placement at Marsh. “We expect the overall trend to continue, and for insurer competition to intensify, barring unforeseen changes in conditions.”
The report reveals significant variations across different insurance lines. Property rates declined 6% globally, with the US and Pacific regions experiencing the largest decreases at 9% each. Financial and professional lines rates decreased by 6% globally, with cyber insurance also declining by 6%. However, casualty insurance rates increased by 4% globally, driven largely by an 8% rise in US casualty premiums due to the severity of claims and large jury verdicts.
Despite the positive trends, Marsh notes that insurance pricing can reverse suddenly due to various factors, including major catastrophic events. The upcoming North American tropical storm and hurricane season remains a potential concern that could affect market conditions.
