Global commercial insurance pricing declined by an average of 4% in the second quarter of 2025, according to Marsh’s latest Global Insurance Market Index. The figures mark the fourth consecutive quarterly fall, continuing the softening seen since early 2021, and reflecting rising competition among insurers as well as expanding market capacity.

All global regions recorded composite rate reductions except the US, where rates remained flat. The sharpest falls were seen in the Pacific region, down 11%, followed by the UK at 6%. Other regions recorded declines of 5% (Asia, Latin America and the Caribbean, and India, the Middle East and Africa) and 4% (Europe and Canada).

Global average property rates fell by 7%, led by the US and Pacific markets with 9% and 13% reductions respectively. Cyber rates dropped 7% globally, with Europe, and Latin America and the Caribbean recording falls of 15% and 17%. Financial and professional lines continued to soften, falling 4% globally. Casualty diverged, however, rising by 4% overall, including a 9% increase in the US, driven by the size and frequency of high-value, nuclear awards.

Commenting on the findings, John Donnelly, president, global placement, Marsh, said: “Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options. Against this backdrop, rising US casualty rates are a concern for clients.

"As geopolitical issues, including tariffs and cross-border conflicts, create new challenges and uncertainties, organisations now have access to many attractive traditional and alternative financing strategies to manage their risks.”

---