Global Commercial Insurance Rates Decline for Third Consecutive Quarter
Global commercial insurance rates experienced an average decline of 3% in the first quarter of 2025, marking the third straight quarter of decreases, according to Marsh’s Global Insurance Market Index. This trend, which began in early 2021, reverses nearly seven years of rising rates. Increased insurer competition is cited as the primary driver behind the downward trend, with rates declining across all regions and most major product lines.
The UK and Pacific regions saw the most significant composite rate decreases at 6% and 8% respectively, while US rates fell by a more modest 1%. Clients have capitalized on the 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.
The report highlights 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, as well as cyber insurance rates, both decreased by 6%. However, casualty insurance rates bucked the trend, increasing by 4% globally due to an 8% rise in US casualty premiums, attributed to severe claims and large jury verdicts.
Despite the positive trends, Marsh notes that insurance pricing can reverse suddenly due to factors like major catastrophic events. The upcoming North American tropical storm and hurricane season remains a potential concern that could affect market conditions.
