Commercial insurance premiums to reach $1.4t in 2025

Reinsurance capital hit $760b, increasing competition across the sector.

Global commercial insurance premiums are projected to reach about $1.4t, with overall non-life premium growth of around 2% to 3%.

Pricing conditions are beginning to ease across commercial lines. Global composite rates have declined by around 4%, whilst property insurance rates have fallen by as much as 8% compared to previous quarters. 

However, climate and catastrophe risks continue to weigh on property portfolios, with catastrophe-exposed lines still seeing rate increases in the mid-single to low-double digits due to ongoing natural catastrophe losses.

Insurers are also increasing their focus on technology to improve efficiency. More than 80% of leading insurers have raised investments in artificial intelligence, data analytics and automation, particularly in underwriting, pricing and claims management. 

At the same time, small and medium-sized enterprises (SMEs) and mid-market firms remain a key source of growth, contributing roughly one-third or more of new business in many developed markets.

In the reinsurance segment, global capital reached a record $760b in 2025. Alternative capital, including insurance-linked securities, accounted for about $115b, or roughly 15% of total reinsurance capital. 

Catastrophe bond issuance also reached a record $25.6b in 2025, with more than $7b issued in the fourth quarter alone.
Looking ahead, reinsurance treaty renewals for 2026 are expected to see double-digit rate decreases if there are no major loss events.