Global Commercial Insurance Rates Continue to Decline in Q2 2025: Marsh Report

Global commercial insurance pricing dropped by 4% in the second quarter of 2025, marking the fourth consecutive quarterly decline, according to Marsh’s latest Global Insurance Market Index.

This decline follows a 3% drop in the first quarter and comes after nearly seven years of consistent rate increases. Marsh highlighted that all major regions reported year-on-year rate reductions, except the United States, where rates remained unchanged.

The Pacific region saw the most significant drop at 11%, while the UK experienced a 6% decrease. Rates in Asia, Latin America and the Caribbean (LAC), and the India, Middle East, and Africa (IMEA) region fell by 5%, with both Canada and Europe seeing 4% declines.

Globally, property insurance pricing declined by 7%, driven by a sharp 13% drop in the Pacific and a 9% decrease in the US. Meanwhile, casualty insurance rates moved in the opposite direction, increasing by 4% worldwide. The US saw a notable 9% surge in casualty rates, driven by higher claims severity and frequency, including large jury verdicts.

Financial and professional liability insurance rates decreased by 4% globally, continuing a trend of moderation. Rate reductions were observed in all regions except the US, where prices remained flat. Cyber insurance rates also declined by 7% globally, with LAC and Europe reporting the steepest drops of 17% and 15%, respectively.

Marsh attributed the broader trend to strong insurer competition and rising capacity, which are contributing to more favorable coverage terms for clients. However, the firm warned that increasing casualty rates in the US and geopolitical uncertainties could present ongoing challenges for the market.