New York, Feb 18: According to the latest Global Insurance Market Index released by Marsh Risk, a business of Marsh (NYSE: MRSH) and the world’s leading insurance broker and risk advisor, global commercial insurance rates declined by an average of 4% in the fourth quarter of 2025.
The decline was primarily driven by growing competition among insurers, a favorable loss environment, improved reinsurance pricing, and increased market capacity. Q4 2025 marks the sixth consecutive quarter of global rate decreases, following seven years of quarterly increases, and continues the moderating rate trend first observed in Q1 2021.
Regional Highlights
With the exception of the United States, all global regions recorded year-over-year composite rate decreases in Q4 2025:
- Pacific: Down 12%
- India, Middle East, and Africa (IMEA): Down 10%
- Latin America and the Caribbean (LAC): Down 7%
- United Kingdom and Canada: Down 7%
- Europe: Down 6%
- Asia: Down 5%
- United States: Flat in Q4 (after a 1% decline in Q3 2025)
Coverage Line Trends
Property Insurance:
Property rates fell by 9% globally, following an 8% decline in Q3. Double-digit decreases were recorded in the Pacific (14%), LAC (12%), IMEA (11%), and the UK (10%). Rates declined by 8% in the US, Canada, and Europe, and by 5% in Asia.
Casualty Insurance:
Casualty rates rose by 4% globally, up from a 3% increase in Q3. The increase was largely driven by a 9% rise in the US (compared to 8% in Q3), reflecting insurers’ ongoing concerns about the frequency and severity of casualty claims, including large “nuclear” jury awards.
Financial and Professional Lines:
Rates declined by 4% globally, compared to a 5% decline in Q3. Most regions recorded decreases, led by IMEA (11%) and the UK and Canada (5%). In the US, rates were flat, compared to a 2% decline in the previous quarter.
Cyber Insurance:
Cyber rates decreased by 7% globally, with declines across all regions. The largest drop was in LAC (14%), while the US saw a more modest 3% decrease.
Commenting on the findings, John Donnelly, President, Global Placement, Marsh Risk, said,
“The global insurance market has been characterized by ample capacity across most lines and regions over the last six quarters. In the absence of unforeseen circumstances, we expect this trend to continue throughout 2026. This year, clients have the opportunity to secure reduced premium rates and negotiate broader terms, which may include improving the resilience of their programs to address the increasing complexity of risks.”
The report suggests that continued market capacity and competitive conditions may offer clients greater flexibility and improved terms as they navigate an evolving global risk landscape in 2026.