Global commercial insurance premiums continued to fall in the third quarter of 2026, declining by an average of 5% as competition among insurers and abundant market capacity continued to influence pricing.
According to the latest Global Insurance Market Index (GIMI), published on 21 October by Marsh, a global professional services firm specialising in risk, strategy and people, the latest reduction represents the ninth consecutive quarter of falling rates. Property insurance prices dropped by 10%, while casualty rates rose by 1%, largely reflecting ongoing pressures in the US market.
The latest decline follows a 6% reduction in the second quarter of 2026. Marsh reported that favourable conditions for insurers, including strong profitability, substantial capital reserves, reduced reinsurance costs and higher investment returns, continued to encourage competition across major commercial insurance categories.
This competitive environment has given businesses greater scope to negotiate more favourable policy terms at renewal. Alongside lower premiums, Marsh found that clients were able to obtain broader cover, increased policy limits, reduced deductibles and longer-term agreements during the quarter.
According to Marsh, composite commercial insurance rates declined year on year across every global region. The largest fall was recorded in India, the Middle East and Africa (IMEA), where rates decreased by 14%. The Pacific followed with a 12% reduction, while Latin America and the Caribbean (LAC) recorded a 9% fall. Rates in the UK declined by 8%, while Canada, Europe and Asia each registered a 6% decrease. In the US, the reduction was more modest, with composite rates falling by 1%, compared with a 2% decrease in the second quarter.
John Donnelly, President, Global Placement, Marsh Risk, commented: “Geopolitical uncertainty and broader economic concerns remain part of the operating environment, and many insurance buyers were more inclined to retain premium savings rather than reinvesting them in additional coverage. The current environment continues to present opportunities for insureds to enhance their program structures and examine alternative strategies to manage risk.”
Marsh’s analysis showed that property insurance continued to experience some of the most significant price reductions. Global rates fell by 10% in the third quarter, following decreases of 12% in the previous quarter and 9% in the first quarter of the year. Five regions recorded double-digit falls, led by IMEA at 15%, followed by the Pacific at 14%, LAC at 13%, the UK at 11% and the US at 10%. Rates also decreased in Europe by 9%, Canada by 8% and Asia by 7%.
Casualty insurance followed a different trajectory, with global rates rising by 1% during the quarter. This represented a slower increase than the 2% recorded in Q2 2026. Marsh reported that the US was the only region to experience rising casualty rates, with a 6% increase compared with 7% in the previous quarter.
The firm noted that businesses with exposure to US risks continued to encounter more stringent underwriting assessments and pricing pressures. While insurers were still providing capacity, Marsh observed a more selective approach to underwriting, including higher attachment points, smaller line sizes and fewer opportunities for substantial rate reductions. These conditions also affected insurance programmes outside the US where exposure to American risks remained a consideration.
Financial and professional lines recorded a further global rate reduction of 3%, extending the run of quarterly decreases to 17 consecutive quarters. Marsh reported moderate reductions across most regions, while US rates increased by 1%, unchanged from the previous quarter. Directors’ and officers’ (D&O) insurance remained an area of focus for insurers, although some policyholders secured double-digit premium reductions in individual cases.
Cyber insurance also continued to become more affordable, with global rates declining by 4% for the 13th consecutive quarter. The pace of reduction was unchanged from Q2 2026. According to Marsh, US cyber rates stabilised following an extended period of decreases, while other regions continued to record lower prices. Additional capacity from new market entrants gave buyers more options, with many using the increased competition to secure broader cover and lower retention levels.
Donnelly added: “Market conditions remained broadly unchanged, with low loss levels from the US hurricane season contributing to favourable underwriting results for insurers. Strong capacity and competition across much of the market, when combined with favourable reinsurance conditions, continue to provide clients with opportunities.”
Marsh’s latest findings point to continued opportunities for businesses to review insurance arrangements and negotiate terms as the market remains competitive.
However, the report highlights differences between insurance categories, with property and cyber rates continuing to decline, casualty pricing increasing slightly overall and financial and professional lines maintaining their downward trend. For insurance buyers, the conditions provide scope to assess whether savings can be achieved while reviewing policy limits, coverage requirements and wider risk management strategies.
