Global commercial insurance rates fell by an average of 4% in Q3 2025, matching the decline seen in Q2, according to figures from Marsh. This marks the fifth consecutive quarterly decrease following seven years of increases. Heightened competition among insurers, favourable reinsurance pricing, and increased market capacity drove the trend.
All global regions saw year-over-year rate decreases. The Pacific led at 11%, followed by Latin America and the Caribbean and the UK at 6% each. Asia and India, Middle East and Africa declined by 5%, Europe by 4%, Canada by 3%, and the US by 1% after a flat Q2. Rates across property, cyber and financial and professional lines fell in every region.
Casualty rates rose 3% globally, down from 4% in Q2, driven by an 8% rise in the US due to large jury awards. Property rates fell 8% globally, with the Pacific down 14% and other regions between 3% and 7%. Financial and professional lines decreased 5% globally, ranging from 10% in the Pacific to 2% in the US. Cyber insurance rates dropped 6% globally, including double-digit declines in Europe (12%), Latin America and the Caribbean and the UK (11%), and the Pacific (10%).
John Donnelly, president, global placement at Marsh, said: “With the exception of US casualty, clients are benefiting not only from lower rates but also from opportunities to negotiate improved terms and broader coverage. These rate trends remain consistent in a market characterised by ample capacity.”
Donnelly anticipates a continuation of these trends, barring unforeseen changes.
Source: cirmagazine.com
