Global Commercial Insurance Rates Decline for Third Consecutive Quarter
A recent report by Marsh, a business of Marsh McLennan, reveals that global commercial insurance rates dropped by an average of 3% in the first quarter of 2025, marking the third consecutive quarterly decline. This trend, which began in early 2021, has reversed nearly seven years of rising rates, creating a more favorable market for insurance buyers.
The Global Insurance Market Index highlights increased insurer competition as the primary driver behind the downward trend in rates, with declines observed across all regions and most major product lines. The UK and Pacific regions experienced the most significant 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 favorable 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, with insurer competition intensifying, 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, followed by the UK at 6%. Financial and professional lines rates decreased by 6% globally, with cyber insurance similarly declining by 6%. However, casualty insurance bucked the trend with rates increasing by 4% globally, driven largely by an 8% rise in US casualty premiums, attributed to the severity of claims and large jury verdicts.
Despite the overall 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.
