Global insurance rates fall 4% in Q2 2025 on competition gains

All regions reported year-on-year rate reductions.

Global commercial insurance rates fell by 4% in the second quarter of 2025, continuing a downward trend driven by increased competition among insurers, according to the latest Global Insurance Market Index from Marsh. 

This follows a 3% decline in Q1 and marks the fourth consecutive quarterly decrease after nearly seven years of increases.

All regions reported year-on-year rate reductions in Q2 2025, except for the US, where rates held steady. 

The Pacific region recorded the largest drop at 11%, followed by the UK with a 6% decline.

Rates in Asia, Latin America and the Caribbean (LAC), and India, Middle East, and Africa (IMEA) fell by 5%, whilst Canada and Europe both saw 4% declines.

Property insurance rates fell 7% globally, with the Pacific and US experiencing the steepest declines at 13% and 9%, respectively. 

Casualty insurance, however, saw a 4% global increase, led by a 9% rise in the US due to higher claim frequency and severity, including large jury awards.

Financial and professional lines moderated, decreasing by 4% globally, with rate declines seen in every region except the US, where rates were flat. 

Cyber insurance rates dropped 7% globally, with notable decreases of 17% in LAC and 15% in Europe.

Marsh said insurer competition and increased market capacity are contributing to broader coverage options. 

However, the firm noted that rising US casualty rates remain a concern amid ongoing geopolitical risks.