Marsh, a global leader in insurance broking and risk management, has reported that global commercial insurance rates declined by an average of 5% in Q1 2026, following a 4% fall in Q4 2025 and marking the seventh consecutive quarter of rate reductions.
The firm, in its just published ‘Global Insurance Market Index (GMI)’, attributed the downward rate trend in the quarter to abundant capacity and intense insurer competition across most major product lines.
A news report from Reinsurance News, an online risk underwriting-focused medium, on Wednesday indicated that Marsh reported that all global regions recorded year-over-year composite rate decreases in Q1 2026, with the Pacific and India, Middle East and Africa (IMEA) regions posting the largest declines of 12% and 10%, respectively.
Similarly, the report’s findings showed that rates also fell by 8% in Latin America and the Caribbean (LAC) and the UK, while Canada recorded a 6% decline, and Europe and Asia each saw rates decrease by 5%, just as in the US, where the overall composite rate was flat in Q4 2025, rates declined by 1% in Q1 2026.
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Marsh further revealed that property rates declined by 9% globally in Q1 2026, the same rate recorded in the last quarter of 2025
The firm clarified: “Double-digit decreases were recorded in five regions: PAC (14%); LAC (12%); and 10% in the US, UK, and IMEA. Rate decreases were also recorded in Europe (8%), Canada (6%), and Asia (5%).”
Meanwhile, while casualty rates increased 3% globally in Q1 2026, down from a 4% increase in Q4 2025, Marsh attributed the increase primarily to a second consecutive increase of 9% in the US, where rate increases continue to be fuelled by persistent claims severity.
However, the firm reported that casualty rates declined in every other region in Q1 2026, particularly for companies without US exposures just as financial and professional lines rates decreased by 5% globally in the opening quarter of the year, down from a 4% decrease in Q4 2025.
It noted that rate reductions were recorded across all regions, ranging from 8% in the UK and 7% in Pacific and Asia, to a 2% decline in the US.
Marsh further reported that cyber insurance rates declined by 5% globally in Q1 2026, following a 7% decrease in Q4 2025, adding that the largest decline was in IMEA, at 14%, followed by reductions ranging from 11% in LAC to 2% in the US.
Commenting on the report’s findings, President, Global Placement, Marsh Risk, John Donnelly, said: “While the Middle East conflict is being carefully observed for its potential impact on insurance markets, the current competitive environment is expected to persist as insurer profitability remains strong.
“This is especially true in lines such as property, which is supported by favourable reinsurance terms and significant capacity.
“Given broad economic uncertainty and inflationary pressures, clients have the opportunity to optimise their program structures, increase limits, or adjust retentions to improve the resilience of their programs in the year ahead”, the expert added.
