Global Commercial Insurance Rates Fall 4% in Q3 2025, Marking the Fifth Consecutive Quarterly Decrease

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10/23/2025 - 12:34 PM

NEW YORK--(BUSINESS WIRE)-- 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, on average, by 4% in the third quarter of 2025, repeating the 4% decline recorded in Q2 2025. Growing competition among insurers, coupled with favorable reinsurance pricing, were the primary drivers for the rate decline along with increased market capacity.

All global regions experienced year-over-year composite rate decreases in Q3 2025. The Pacific (at 11%), Latin America and the Caribbean (LAC) (6%), and UK (6%) regions experienced the largest composite rate decreases. Rates declined in Asia and India, Middle East, and Africa (IMEA) by 5% each; in Europe by 4%; and in Canada by 3%. The overall composite rate in the US – which remained flat in Q2 2025 – declined by 1%. Rates for property, cyber, and financial and professional insurance declined in every region.

Q3 marks the fifth consecutive global quarterly decrease following seven years of quarterly increases and is a continuation of the moderating rate trend first recorded in Q1 2021.

Other findings included:

Casualty rates increased 3% globally – down from 4% in Q2 – which was driven by an 8% 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.
Property rates declined by 8% globally, following a 7% decline in Q2. The Pacific (14%) and US and LAC (9)% regions experienced the largest decreases, while all other regions declined between 3% and 7%.
Financial and professional lines rate decreases continued, at 5% globally in the third quarter compared to a 4% decrease in Q2 2025. Rates declined in every region, ranging from 10% in Pacific to 2% in the US.
Cyber insurance rates decreased by 6% globally, with declines seen in every region, including double-digit decreases in Europe (12%); LAC and the UK (11%); and Pacific (10%).

Commenting on the report, John Donnelly, President, Global Placement, 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 characterized by ample capacity. Barring unforeseen changes in conditions, we expect these trends to continue and look forward to helping clients to take advantage of the competitive insurance market.”

About Marsh

Marsh, a business of Marsh McLennan (NYSE: MMC), is the world’s top insurance broker and risk advisor. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, follow us on LinkedIn and X.