Digital report

Global Insurance Market Index

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate change at renewal — providing insights on the world's major insurance markets.

Q2 2025 GIMI commentary

Global commercial insurance trends improved, on average, in the second quarter of 2025 for our clients across most product lines; US casualty was the main exception.

Global insurance rates declined 4% in the second quarter of 2025, marking the fourth consecutive quarter of decline in Marsh’s Global Insurance Market Index. Declines were experienced in most regions and product lines. The composite rate declined in all regions except in the US, where the rate was flat.

In the second quarter, clients generally benefited both from reductions in pricing and improved coverage options. Major insurers had ambitious growth targets and generally experienced favorable conditions, including reinsurance pricing, which contributed to high levels of competition.

It’s important to keep in mind that insurance pricing trends can, at any given time, be impacted by a major catastrophe or series of catastrophes. In particular, every year brings a keen eye on the North American tropical storm/hurricane season.

The property insurance rate declined in every region. Rate reductions in financial and professional lines continued to moderate as some insurers appeared to have reached a bottom in pricing, particularly in areas like directors and officers (D&O) liability.

The main product line experiencing rate increases was casualty, due largely to conditions in the US, including the frequency and severity of claims, many of which are characterized by large (so-called “nuclear”) jury awards. Excess casualty risks generally experienced significantly higher rate increases than primary lines. Casualty insurance trends are likely to continue for the foreseeable future, barring unanticipated changes in conditions.

Geopolitical issues, including tariffs and cross-border conflicts, have created uncertainty for companies in many industries regarding growth plans. In turn, economic uncertainties can slow the pace of insurance uptake, which can affect insurer growth prospects and increase competition among them, putting downward pressure on rates.

Despite the softening global market, clients also explored alternative risk financing strategies, such as self-insurance, parametric coverage, and captive insurance options. In addition to the continued formation of new captives, more companies are optimizing existing ones as part of their long-term risk finance strategy.

With both new and established insurers vigorously competing for business, we expect the overall trends to continue throughout 2025, barring unforeseen changes in conditions.

Greater insurer competition is typically experienced by clients not only in rates, but also in opportunities to negotiate improved terms and conditions. Clients should work closely with Marsh to assess exposures and risk appetite and to find areas where it may be possible to broaden coverage compared to what was available in recent years.

- John Donnelly, President, Global Placement

Q2 2025

Global insurance markets: Increased insurer competition drives rate declines and coverage enhancements

Global commercial insurance rates declined by 4% in the second quarter of 2025, the fourth consecutive decrease in the composite rate following seven years of increases, according to the Marsh Global Insurance Market Index.

Market capacity levels continued to rise due to greater competition among both new and existing insurers, leading to generally more favorable terms and broader coverage options for clients.

A continuing increase in insurer competition was the main catalyst behind rate trends, which declined globally in every region except the US, where rates remained flat. The UK and the Pacific regions experienced the largest composite rate decreases of 6% and 11%, respectively.

Rates decreased globally across all major product lines with the exception of casualty, where rates increased 4%.

Many clients used the increasingly competitive environment to negotiate better terms, enhance coverage, and explore alternative risk financing strategies such as self-insurance and captives.

Global Insurance Market Index second quarter 2025

Global composite insurance rate change

*Note: All references to rate and rate movements in this report are averages, unless otherwise noted. For ease of reporting, we have rounded all percentages regarding rate movements to the nearest whole number.

Global composite insurance rate change – by region

Global product line trends, Q2 2025:

Property rates declined by 7% globally, with rate movement varying by region. The US and Pacific regions experienced the largest decreases, at 9% and 13%, respectively. All other regions declined between 4% and 7%.
Casualty rates increased 4% globally, led by a 9% increase in the US. Other regions varied between 1% increases and 5% decreases.
Financial and professional lines rates decreased 4% globally, declining in every region, except the US, where rates were flat.
Cyber insurance rates decreased by 7%, with declines seen in every region, including 17% in Latin America and the Caribbean and 15% in Europe.

Our rates reflect the segment mix of Marsh’s client portfolio.

Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

07/24/2025

Insurance rates in the second quarter in the US were flat.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

07/24/2025

Insurance rates in the UK declined 6% in the second quarter.

Global Insurance Market Index

Latin America and Caribbean insurance rates

07/24/2025

Insurance rates in the LAC region decreased 5% in the second quarter.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Page Compliance ID

Global Insurance Market Index

Global commercial insurance trends improved, on average, in the second quarter of 2025 for our clients across most product lines; US casualty was the main exception.