Global commercial insurance rates declined by an average of 4% in the fourth quarter of 2025, according to Marsh Risk's Global Insurance Market Index released today – the sixth consecutive quarter of decreases following seven years of increases that reshaped the industry.
The prolonged hard market that began around 2018 was driven by what industry analysts described as a "quadruple threat": persistent economic and social inflation, mounting natural catastrophe losses, and reinsurance constraints that tightened significantly after Hurricane Ian in 2022.
Higher interest rates, reduced major loss activity, and increased market capacity have since eased pressure on underwriting earnings, contributing to the current softening trend.
All regions except the US recorded year-over-year composite rate decreases in Q4 2025. The Pacific region saw the steepest decline at 12%, followed by India, Middle East, and Africa (IMEA) at 10%.
Latin America and the Caribbean, the UK, and Canada each recorded 7% decreases. Europe saw rates fall by 6%, while Asia experienced a 5% decline. The US remained flat after recording a 1% decrease in Q3.
Property insurance rates fell by 9% globally, compared to an 8% decline in the previous quarter. Four regions posted double-digit decreases: the Pacific at 14%, LAC at 12%, IMEA at 11%, and the UK at 10%.
Global casualty rates, however, rose by 4%, with the US driving this increase at 9%. Marsh Risk attributed the uptick to ongoing insurer concerns about claim frequency and severity, including large jury awards.
Financial and professional lines rates decreased by 4% globally, with regional decreases ranging from 11% in IMEA to 5% in the UK and Canada. Cyber insurance rates fell by 7% globally, with declines recorded in every region.
John Donnelly (pictured above), president of Global Placement at Marsh Risk, said the market has seen "ample capacity across most lines and regions over the last six quarters," adding that clients have an opportunity this year to secure lower premium rates and negotiate broader terms.
According to WTW's Insurance Marketplace Realities 2026 report, nearly every commercial line aside from excess casualty now sits in soft-market territory, creating a rare window for buyers to expand coverage and enhance structural positions.
However, Aon's Q4 2025 Global Insurance Market Insights cautioned that these buyer-friendly conditions may be short-lived, warning that organizations face "a limited window to secure favourable terms before macro-level pressures contribute to more varied conditions later in 2026."
Industry experts recommend that clients begin renewal planning 60 to 90 days in advance, noting that in softening product lines such as cyber and financial lines, early marketing and strong submissions position buyers as preferred risks and attract greater competition from insurers.
