Global commercial insurance rates fell 3%, on average, in the first quarter of 2025 following a 2% decline in 4Q2024, marking the third consecutive quarterly decrease following seven years of rising rates, according to the Global Insurance Market Index, released by Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan.

The company’s press release says that this continues the moderating rate trend first seen in the Index in 1Q2021, which is being driven by heightened competition in the global insurance market due to increased capacity from existing providers and some new entrants. This is particularly evident in property, financial and professional, and cyber lines, where insurers are actively seeking new business opportunities and expanding their offerings.

All global regions experienced year-over-year composite rate decreases in Q1. Rates fell in Pacific by 8%, in the UK by 6%, in India, Middle East, and Africa (IMEA) by 4%, in Asia and Canada by 3%, in Latin America and the Caribbean (LAC) by 2% and in the US and Europe by 1%.

Other findings included:

• Property rates declined 6% globally, following a 3% decline in 4Q2024. The US and Pacific regions experienced the largest decreases, at 9% each; the UK fell 6%; IMEA and LAC declined 4%; Canada by 3%; and Europe and Asia by 1%. The global property market is experiencing increased capacity driven by insurers’ improved financial performance and lower reinsurance costs.
• Casualty rates increased 4% globally in Q1, the same as the previous quarter. This was driven by an 8% increase in US casualty rates due largely to the frequency and severity of casualty claims, many of which are characterized by large jury awards. Insurer capacity for US casualty remained constricted in the first quarter. Other global regions either had low single digit increases or decreases.
• Financial and professional lines rates decreased by 6% globally, the same rate as the previous quarter, with rate decreases recorded in every region as a result of robust competition and available capacity.
• Cyber insurance rates decreased 6% globally – following a 7% decline in the previous quarter – with decreases in every region. Insureds are increasingly taking a proactive approach to risk management and are often using premium savings to enhance their coverage, reduce retentions, and increase limits.

“Driven by increased insurer competition and favorable reinsurance pricing, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty. We expect the overall trend to continue, and for insurer competition to intensify, barring unforeseen changes in conditions. We are committed to helping clients manage costs, protect their balance sheets, and successfully navigate and benefit from the continued improvement in market conditions”, commented John Donnelly, President, Global Placement, Marsh.