Global Insurance Market Sees Continued Rate Declines

Fifth Consecutive Quarter of Decreasing Rates

The global insurance market experienced a 4% decrease in rates during Q3 2025, continuing a trend of five consecutive quarters of decline. According to Marsh's Global Insurance Market Index, this reduction was observed across most regions and product lines. The primary drivers behind this trend are increased capacity in the insurance market and heightened competition among providers.

Key Factors Driving Rate Reductions

1. Significant insurance capacity: The market currently has substantial capacity, leading to competitive pricing.
2. Favorable reinsurance pricing: More advantageous reinsurance terms have contributed to overall rate decreases.
3. Regional variations: While most regions saw declines, the Pacific region experienced the largest drop in property insurance rates at 14%.

Product Line Performance

• Property Insurance: Rates decreased by 8% globally, with the Pacific region showing the largest decline at 14%.
• Cyber Insurance: Experienced a 6% decline, with significant drops in Europe (12%) and Latin America/Caribbean/UK (11%).
• Financial & Professional Lines: Saw a 5% global decrease across all regions.
• Casualty Insurance: Showed a 3% global increase, primarily driven by an 8% rise in the United States due to higher claim frequencies and values.

Regional Insights

• Asia: Rates decreased by 5% in Q3 2025, slightly higher than the global average.
• Property insurance in Asia dropped by 5% due to intense competition.
• Casualty insurance rates in Asia decreased by 3%, showing improvement from the previous quarter's 2% decline.

Market Outlook

Industry experts predict that the current trend of decreasing rates will continue unless there are significant unforeseen events. The mild 2025 North American hurricane season contributed to the stability, as fewer major weather events typically lead to lower property insurance claims. Continued intense competition among insurers is expected to maintain downward pressure on rates across most product lines.