Global commercial insurance rates fell 6% in Q2 2026, marking the eighth consecutive quarterly decline, driven by abundant capacity and strong insurer competition across all major product lines, according to the latest Global Insurance Market Index (GIMI) released by Marsh.
“Strong insurer profitability, a surplus of capital, lower reinsurance costs, and higher investment returns are intensifying competition and contributing to lower rates,” Marsh said
The global commercial insurance rates decline of 6% in Q2 2026 follows a 5% decline in the opening quarter of the year.
According to Marsh’s index, all global regions recorded year-over-year composite rate declines in Q2 2026.
India, the Middle East and Africa (IMEA) saw the largest decrease, with composite rates falling 16%. The Pacific and Latin America and Caribbean (LAC) regions followed, with declines of 13% and 9%, respectively.
Meanwhile, in the UK, composite rates decreased by 8%, while Canada recorded a 7% decline, Europe fell by 6%, and Asia declined by 5%.
In the US, composite rates continued to ease, falling 2% in Q2 2026 following a 1% decline in Q1 2026.
Notably, Property rates declined by 12% globally, following 9% decreases in Q1 2026 and Q4 2025.
Marsh’s index revealed that double-digit decreases were recorded in five regions: IMEA (19%); Pacific (15%); LAC (14%); the US (13%); and the UK (11%).
Property rate decreases were also recorded in Europe (9%), Canada (8%), and Asia (5%).
Turning to Casualty, rates increased 2% globally, down from a 3% increase in Q1.
Marsh explained that all regions experienced rate decreases this quarter except the US, where casualty rates increased by 7% (9% in Q1).
“US-exposed risks continued to face heightened underwriting scrutiny and pricing pressure; while still available, capacity was increasingly selective, with a strong focus on risk quality and program structure,” Marsh observed.
Cyber insurance rates also declined by 4% globally, marking the twelfth consecutive quarter of declines.
The largest decline was in IMEA, at 14%, followed by reductions ranging from 10% in LAC to 2% in the US.
Providing more colour on the above findings, John Donnelly, President, Global Placement, Marsh Risk, said, “Positive insurer financial performance, a surplus of capital, lower reinsurance costs, and higher investment returns have produced greater levels of competition and contributed to lower rates.
“In many markets, in addition to competing based on price, insurers were seeking to differentiate themselves through broader coverage, expanded policy terms, and lower deductibles.
“While market conditions remained broadly favourable, outcomes still varied by risk. Industry sector, geography, and catastrophe exposure continued to influence pricing and insurer appetite.
“The property market saw the sharpest global rate declines — 12% — in the second quarter, with available capacity and high levels of competition giving buyers greater scope to revisit both cost and program structure. Property is often the largest single premium class for most corporate entities.
“Financial and professional lines (FINPRO) and cyber rates also continued to see declines globally, but the pace of reductions has moderated, moving closer to more stable pricing levels. The US was the only region to record a modest increase in FINPRO rates.
“Casualty was the only major product line to record a global rate increase. While pricing outside the US declined across all regions, significant increases persisted in the US, driven by claims severity and ongoing litigation pressures. While there are early signs that the pace of increase may be slowing, the market remains challenging in the US.
“While global economic uncertainties have led many buyers to retain premium savings, many organisations continue to invest in alternative risk strategies, including captives.
“Absent a severe northern hemisphere storm season or an unexpected string of major natural catastrophes, current market conditions are expected to persist. This is likely to provide insureds with additional opportunities to achieve not only top-line cost reductions, but also to improve coverage and refine program design, which may better position them for future market changes.”
