Global Commercial Insurance Rates Continue to Fall in Q2 2025

By priyashah

London | 24 July, 2025

Global commercial insurance rates experienced a 4% average decline in the second quarter of 2025, marking the fourth consecutive global quarterly decrease. This trend follows a 3% drop in the first quarter and signifies a continuation of moderating rates that began in Q1 2021, according to Marsh’s latest Global Insurance Market Index. Increased insurer competition is the primary driver behind rising market capacity, more favorable rates, and expanded coverage options.

All global regions,except the United States,saw year-over-year composite rate decreases ranging from 4% to 11% in Q2. The U.S. market remained flat. The Pacific and united Kingdom regions recorded the most notable composite rate decreases, at 11% and 6% respectively. Asia, Latin America and the Caribbean (LAC), and India, Middle East, and Africa (IMEA) experienced rate declines of 5%, while Canada and Europe saw rates fall by 4%.

Key findings from the report include:

• Property rates decreased by 7% globally, following a 6% decline in Q1. The U.S. and Pacific regions saw the largest drops at 9% and 13% respectively, with other regions experiencing declines between 4% and 7%.
• casualty rates rose by 4% globally,primarily driven by a 9% increase in the U.S. This rise is largely attributed to the frequency and severity of casualty claims, often characterized by substantial jury awards.
• Financial and professional lines rates continued to moderate, decreasing by 4% globally in Q2, down from a 6% decrease in Q1 2025. Rates declined in all regions except the U.S., where they remained flat.
• cyber insurance rates fell by 7%, with declines observed across all regions, including significant drops of 17% in LAC and 15% in Europe.

John Donnelly, President of Global Placement at Marsh, commented on the findings, stating, “Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options. Against this backdrop, rising U.S. 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 shoudl 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 previously.”

Historical Trends

The current trend of declining global commercial insurance rates marks a significant shift after seven consecutive years of quarterly increases. This moderation began in the first quarter of 2021, indicating a sustained period of market adjustment and increased competition among insurers.

Frequently asked Questions

Q1: What is the primary reason for the decrease in global commercial insurance rates?
A1: The primary reason is increasing insurer competition, leading to greater market capacity, more favorable rates, and broader coverage options.

Q2: Which regions experienced the largest rate decreases?
A2: The Pacific and United Kingdom regions experienced the largest composite rate decreases, at 11% and 6% respectively.

Q3: Are casualty rates also decreasing globally?
A3: No, casualty rates increased by 4% globally, led by a 9% increase in the U.S.due to claim frequency and severity.

Compliance & Disclaimers

this report is based on data from Marsh’s Global Insurance Market Index and is for informational purposes only. It does not constitute financial or insurance advice. Readers should consult with qualified professionals for advice tailored to their specific needs.

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