What's Happening?
Global commercial insurance rates decreased by 4% in the third quarter of 2025, marking the fifth consecutive quarterly decline, according to Marsh's Global Insurance Market Index. This trend follows a period
of seven years of quarterly increases, with the decline attributed to increased competition among insurers and favorable reinsurance pricing. The U.S. market saw a 1% decline in rates, while other regions such as the Pacific, Latin America, and the Caribbean experienced larger decreases. Rates for property, cyber, and financial and professional insurance fell across all regions, while casualty rates increased by 3% globally, driven by an 8% rise in the U.S. due to high-severity claims.
Why It's Important?
The continued decline in global commercial insurance rates signifies a shift in the insurance market, offering potential cost savings for businesses. In the U.S., the modest rate decrease could benefit companies seeking to lower their insurance expenses, particularly in property and cyber insurance. However, the increase in casualty rates, especially in the U.S., highlights ongoing challenges with high-value claims. This trend may influence insurance purchasing decisions and risk management strategies for businesses, as they navigate a market with ample capacity and competitive pricing.
What's Next?
As the trend of declining insurance rates persists, businesses may have opportunities to negotiate better terms and broader coverage. Marsh anticipates these trends to continue, barring any unforeseen changes in market conditions. Companies are likely to leverage the competitive market to optimize their insurance portfolios, while insurers may need to adjust their strategies to maintain profitability amid decreasing rates.
