Marsh’s latest Global Insurance Market Index (GIMI) shows 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.
According to the index, the downward rate movement in the opening quarter was again fuelled by abundant capacity and intense insurer competition across most major product lines.
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.
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%.
In the US, where the overall composite rate was flat in Q4 2025, rates declined by 1% in Q1 2026.
Elsewhere in the report, Marsh revealed that property rates declined by 9% globally in Q1 2026, repeating the trend seen in Q4 2025.
“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%),” the firm added.
Meanwhile, casualty rates increased 3% globally in Q1 2026, down from a 4% increase in Q4 2025.
Marsh said that the increase was driven by a second consecutive increase of 9% in the US, where rate increases continue to be fuelled by persistent claims severity.
However, casualty rates declined in every other region in Q1 2026, particularly for companies without US exposures.
At the same time, financial and professional lines rates decreased by 5% globally in the opening quarter of the year, down from a 4% decrease in Q4 2025.
“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 added.
Finally, cyber insurance rates declined by 5% globally in Q1 2026, following a 7% decrease in Q4 2025. The largest decline was in IMEA, at 14%, followed by reductions ranging from 11% in LAC to 2% in the US.
John Donnelly, President, Global Placement, Marsh Risk, commented on the report, “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.”
