London | 24 July, 2025
According to the latest Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan (NYSE: MMC), global commercial insurance rates fell 4%, on average, in the second quarter of 2025 following a 3% decline in Q1 2025. Increasing insurer competition, is currently the main catalyst behind rising market capacity, more favorable rates, and broader coverage options.
All global regions experienced year-over-year composite rate decreases in Q2 – of between 4% and 11% – except for the US, where the rate was flat. Q2 is the fourth consecutive global quarterly decrease following seven years of quarterly increases and is a continuation of the moderating rate trend first recorded in Q1 2021.
The Pacific and the UK regions experienced the largest composite rate decreases, at 11% and 6%, respectively. Rates declined in Asia; Latin America and the Caribbean (LAC); and India, Middle East, and Africa (IMEA) by 5%; and in Canada and Europe by 4%.
Other findings included:
- Property rates declined by 7% globally following a 6% decline in Q1, with rate movement varying by region. The US and Pacific regions experienced the largest decreases, at 9% and 13% respectively, while all other regions declined between 4% and 7%.
- Casualty rates increased 4% globally, which was led by a 9% increase in the US due largely to the frequency and severity of casualty claims, many of which are characterized by large (so-called “nuclear”) jury awards.
- Financial and professional lines rates continued to moderate and decreased by 4% globally in the second quarter compared to a 6% decrease in Q1 2025. Rates declined in every region, except the US, where rates remained flat.
- Cyber insurance rates decreased by 7%, with declines seen in every region, including 17% in LAC and 15% in Europe.
Commenting on the report, 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, organizations now have access to many attractive traditional and alternative financing strategies to manage their risks. Clients should work closely with Marsh to assess exposures and risk appetite and to find areas where it may be possible to broaden coverage compared to what was available in recent years.”