Pacific insurers cut rates as property and cyber drive decline

Property rates dropped 13%.

Insurance rates in the Pacific region fell 11% in Q2 2025, the steepest drop globally, according to Marsh. 

The decline was driven by increased competition across key lines, with property, cyber, and financial lines seeing the largest reductions.

Property rates dropped 13%, as insurers offered higher limits and lower deductibles. 

The most significant cuts came from alternative lead quotes, whilst quota share arrangements, particularly in real estate, saw smaller decreases due to oversupply. 

Some clients opted for long-term agreements to secure rate certainty.

Casualty rates declined 5%, marking the third consecutive quarter of decreases. More insurers returned to quoting, though tougher risks saw flat or slightly higher pricing. 

PFAS exposures and US-linked risks remained challenging.

Financial and professional lines pricing fell 10%, with flexible retentions and lower D&O claims activity. LTAs were widely used.

Cyber insurance rates also dropped 10%, despite rising ransomware-related claims. 

There was no major claims activity or exclusions tied to generative AI. Australia’s new Cyber Security Act 2024, which mandates ransomware reporting for firms with over $1.93m (AU$3m) in revenue, continued to influence market focus.

($1.00 = AU$1.55)